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New Hong Kong Financing Review Regulations: Three years of establishment and shareholder changes are essential!

2024-08-19

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When discussing the complex and sophisticated field of Hong Kong financing, we have to deeply analyze the many rules and considerations behind it, especially the sensitive issues of the company's establishment years and equity structure changes. Today, we will focus on the theme of "The relationship between Hong Kong bank financing requirements and the company's establishment years and equity changes", and elaborate on why simply purchasing a Hong Kong company that has been established for many years as a shortcut to financing is not feasible, as well as the risks and logic behind it.

Sendashi Consulting-Hong Kong Financing Assistance

The uniqueness and rigor of Hong Kong’s financing market

As one of the international financial centers, Hong Kong's financing market is known for its openness, efficiency and flexibility, attracting many companies from all over the world to seek financial support. However, the entry threshold of this market is also not low, especially for companies applying for financing, the number of years of establishment has become a rigid criterion. This standard is not set arbitrarily, but is based on the bank's comprehensive consideration of risk control, corporate stability and repayment ability.

The deeper meaning of the establishment age requirement

Hong Kong banks generally require that companies applying for financing must have been established for at least three years. This requirement has multiple meanings. First, three years of operation is enough for a company to experience the baptism of the market and demonstrate its basic survival and adaptability. Second, long-term operation is often accompanied by the accumulation of financial data, which provides a valuable basis for banks to evaluate the profitability, debt status and cash flow of the company. Finally, the establishment period is also a symbol of the company's reputation and stability. For banks, the risk of cooperating with such companies is relatively low.