The Hong Kong Stock Exchange ("HKSE") has issued a guidance letter confirming that it is considering accepting an application which would allow companies incorporated in the British Virgin Islands ("BVI") to list in Hong Kong.

If the application is successful, it will prove particularly attractive to the international private equity community with investment interests in China. As foreign private equity investment reaches a certain level of maturity in China, many private equity firms that have incorporated companies in the BVI for the purpose of investing into China are now looking for an exit. The ability to list in a well-regulated and cost-effective jurisdiction such as Hong Kong will provide such BVI companies with an exit strategy which has not yet been available without first undertaking a significant restructuring.

Please see the attached for further information.