1. Allow nominee shareholder and director structure – beneficiary owner’s identity can be hidden from public company record.
2. With very active & freedom in financial activities. No restriction in fund transfer to & from most part of the world.
3. Close to & with excellent relationship with Mainland China.
4. Enjoy convenience of international banking system.
5. Save legal & government fee when transfer of asset is affected by transfer of shares of a company holding the asset, rather than transfer of the title of the asset directly.
6. Winding up of the HK Company is relatively low in cost & simple in procedure – this may happen due to change of investment strategy, change of business environment etc.

Advantages

1. Diversify investment risk away from mother flagship company
2. More easy to change ownership of China investment
   • change shareholding of Hong Kong Company effectively change the shareholding of China business
3. The activity of the RO can be stopped completely by winding up of the Hong Kong Company – this may happen due to change of investment strategy, change of business environment etc.
4. Close relationship between Hong Kong & China makes application of R O setup easier & quicker.