Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 7

Investor compliance with the laws and regulations in the home countries of their investments should be part of their regulators' due diligence process. They, in turn, should be treated equitably in the home country of their investments especially in respect to their rights to shareholder benefits and concessionary arrangements under double tax agreements.

1.	Do domestic regulators monitor the procedures in place at their locally based cross-border custodians to assure compliance with the laws and regulations of the home countries of their investments?	No. There is no direct regulation on cross border custodian activities to ensure their compliance with the laws and regulations of the home countries of their investments. However, for cross border custodians such as banks and deposit taking companies, they are regulated by the Hong Kong Monetary Authority as authorised institutions under the Banking Ordinance. And for trustees and securities dealers etc., they are regulated by the Securities and Futures Commission under the Securities Ordinance and the Trustee Ordinance.
2.	What are the areas (e.g. benefits, investor compensation) where foreign investors are not treated in the same way as local investors?	None. Foreign investors are treated in the same way as local investors as far as rules and regulations in Hong Kong are concerned.
3.	Can sales proceeds and income be repatriated without any restrictions?	Yes. Hong Kong does not maintain or impose any restrictions on capital movements into and out of Hong Kong.
4.	Are double tax agreements simple to apply, and do foreign investors receive promptly their full entitlement to dividends and interest payments?	Double taxation on dividends and interest payments are not applicable in Hong Kong because there is no dividend or interest withholding tax.