Hong Kong Audit
For many years Hong Kong was considered one of the freest economies in the world, buttressed by an internationally recognized rule of law, free flow of data and information, along with a transparent operating environment and international accounting standards. Global companies have based key China & Asia Pacific hubs in Hong Kong, benefitting from Hong Kong’s status. Over the last several years, however, Beijing has steadily tightened Hong Kong’s political system, and introduced a controversial National Security Law.
For companies, the key provision of the National Security Law is Article 43, which gives Chinese national security authorities broad powers to engage in search, seizing and freezing of assets, and online censorship of those accused of violating the law. The law also contains a clause on extraterritorial reach, meaning companies can be liable anywhere in the world.
Strategy Risks is now offering a screening product for investors/companies to help them develop their risk profile by reviewing and addressing a number of questions relevant to the enforcement of the National Security Law, including but not limited to:
- Are there any legal support or contractual risk concerns as a result of its contracts with Hong Kong entities
- Is there exposure as a result of commitments to dispute resolution in Hong Kong
- Are risks faced as a result of using services providers in Hong Kong, including but not limited to legal, accounting and/or IT providers
- Is there any presence of company information or assets in or reachable through Hong Kong