According to the Wall Street Journal, the reasons will be the restrictions and fines imposed by the Chinese government on due diligence companies
Risk rating companies estimate that it is no longer beneficial to stay in Hong Kong. According to the Wall Street Journal (Wall Street Journal), Some foreign companies have withdrawn their employees from the Chinese city as business slows and local authorities take more restrictive measures regarding corporate intelligence.
Three companies Due diligence From the US and the UK who have been in Hong Kong for more than 10 years have already withdrawn or reduced their operations in 2023, according to the newspaper..
In 2023, China imposed a series of… Restrictions For foreign companies Due diligencewho advise clients on business risks or conduct examinations and investigations within the country.
In July, China Established a fine With a value of 1.5 million US dollars Mintz Group, one of the companies that closed its office in Hong Kong. The penalty occurred because the Chinese government stated that the company carried out this “Unauthorized statistical work”.
In addition to fining Mintz, Chinese authorities also questioned the US consulting firm’s team Payne that it Forbidden A Hong Kong-based senior executive at US risk consulting firm Kroll, to leave China.
The total number of foreign companies with regional headquarters in Hong Kong is declining, and the number of people employed by foreign companies in the city has decreased by 25,000 people between 2019 and 2022, according to Chinese government figures.
“It is clear that both mainland China and Hong Kong are no longer safe companies in terms of due diligence and investigative services, due to the expansion of national security concepts throughout China.” said Martin Purbrick, an analyst at Jamestown.
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