- Diversify investment risk away from mother flagship company;
- More easy to change ownership of China investment (change shareholding of Hong Kong Company effectively change the shareholding of China business);
- 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. ;
- Close relationship between Hong Kong and China makes application of RO setup easier and quicker.
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