I want to ask if I plan to inject some assets into Shanhaiguan to increase my shareholding ratio, are there any restrictions from the HK regulatory authorities, and what kind of restrictions exist?"
HK's backdoor listing rules are very obnoxious; they're unique worldwide.
They limit the proportion of overall asset injection after the acquisition to the original shell company's market value, so Shanhaiguan can only get a little over seventy percent of the shares.
If it weren't for the low threshold of the HK capital market and its proximity to Shanhaiguan's primary market in the Mainland, Mr. Cheng would actually prefer to list Shanhaiguan in America.
Now, to maintain his control within Shanhaiguan and avoid being undermined by clueless ambitious people, Mr. Cheng needs to inject assets into Shanhaiguan as soon as possible.
This sort of thing cannot wait until it is really listed; it needs to be prepared in advance.
"Restrictions on asset injection? Yes, there are, probably...."
