Two of China Resources’ units decamp from Cayman Islands to redomicile in Hong Kong

Two listed companies under China Resources Group are planning to redomicile from the Cayman Islands to Hong Kong, marking the first batch of listed companies to reincorporate in the city under a new law, with analysts believing the trend will continue.

China Resources Beverage (Holdings), the country’s second-largest water bottler under the brand C’estbon, has proposed to redomicile from the Cayman Islands to Hong Kong to reduce operating costs, according to a stock exchange filing late Friday night.

Its sister company, China Resources Building Materials Technology Holdings, announced the same move on Friday night. Both firms said they would need approval from the Hong Kong Company Registry and Cayman Islands regulators, as well as their shareholders. The change would not affect their business operations or listing status.

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The move to set up in Hong Kong would reduce compliance costs as they now need to follow two sets of regulations – those of Hong Kong and the Cayman Islands – and they would also like to use the city to expand their international business, the companies said.

China Resources Beverage is the country’s second-largest water bottler under the brand C’estbon. Photo: Handout alt=China Resources Beverage is the country’s second-largest water bottler under the brand C’estbon. Photo: Handout>

“The change of domicile is an important initiative for the company to further establish its presence in Hong Kong, which can enhance local and international investors’ confidence in the company and facilitate communication between the company and the investors,” Zhang Weitong, chairman of China Resources Beverage, said in the filing.

Both firms are part of state-owned China Resources Group, which is headquartered in Hong Kong and has a wide range of businesses, including consumer goods, energy, urban construction and healthcare. The group has nine listed companies in Hong Kong and 13 on the A-share market in mainland China.

The two China Resources units would be the first listed companies to redomicile in Hong Kong after the government introduced a law in May making it easier for firms to reincorporate without any changes to their business operations and listing status.

Previously, a company that wanted to move its domicile had to wind down its existing entity overseas and shift all assets and transactions to a new firm in Hong Kong, a complicated and costly process.

“Upon the change of domicile to Hong Kong, the company’s geographical coverage of its business activities will be more aligned with its domicile,” Jing Shiqing, chairman of China Resources Building Materials Technology, said in the exchange filing.

“This will facilitate the operations and expansion of onshore and offshore businesses and will effectively reduce the increasing compliance costs of the company from being subject to two sets of regulations in two jurisdictions in the Cayman Islands and Hong Kong.”

The city’s new law comes at a time when changes to global tax laws have made traditional havens like Bermuda and the Cayman Islands less appealing to international businesses. Hong Kong saw this as an opportune moment to entice firms to redomicile in the city as part of its effort to promote itself as an international financial centre, analysts said.

The China Resources logo is seen on its office building. Photo: Handout alt=The China Resources logo is seen on its office building. Photo: Handout>

On May 23, the day the new legislation became effective, French insurer AXA announced its Hong Kong unit would be redomiciled from Bermuda to Hong Kong, while Canadian insurer Manulife later also said it planned to reincorporate from Bermuda to Hong Kong in November.

“With the new legislation that makes redomicile simpler and easier, I expect the trend to continue with more companies following the steps of the two China Resources companies,” said Robert Lee Wai-wang, a lawmaker and chairman of Hong Kong-based Grand Finance Group.

An increasing number of companies opting to redomicile in Hong Kong would create more demand for professional services, more employment and generally more business activity in the city, Lee said.

Shares of China Resources Beverage closed 0.2 per cent lower at HK$11.05 (US$1.29) on Friday, while China Resources Building Materials Technology fell 0.6 per cent to close at HK$1.78 on Friday before their announcements

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

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