The Cayman Islands is now the place of incorporation for nearly six in ten companies listed on the Hong Kong Stock Exchange (HKEX), according to an analysis of the latest exchange data.
In a press release issued on 20 October, Cayman Finance said figures from HKEX show 1,564 of the bourse’s 2,700 listed issuers were incorporated in Cayman as of February, a share of 58%.
In 2015, the figure stood at 875, or 47% of the total. That rise of 78.7% has made Cayman the most common domicile for businesses listed in Hong Kong.
At the end of July 2024, Cayman-incorporated issuers on the exchange had a combined market value of HK$14.72 trillion, or roughly US$1.89trn.
They include several of the largest stocks on the market, among them a number of mainland China’s biggest technology groups, Cayman Finance said.
“Cayman has been an important part of Hong Kong’s capital markets for decades,” said Samantha Widmer, director and head of funds and capital markets at Cayman Finance.
“The fact that nearly 60% of listed companies are incorporated in Cayman shows just how established that relationship has become.”
According to the financial services trade body, much of Cayman’s appeal lies in the exempted company, a vehicle governed by flexible company law rooted in English common law, with final appeals heard by the Judicial Committee of the Privy Council in London.
It added that HKEX has long accepted Cayman as a place of incorporation, and lawyers, sponsors and investors across Asia, Europe and North America know the structure well.
That allows a company to float in Hong Kong while drawing on global capital.
“Businesses seeking to raise capital internationally want a corporate structure that investors, banks and advisers know and trust,” Widmer said.
“Cayman’s legal framework, regulatory credibility and depth of professional expertise have made it a natural choice for companies accessing Hong Kong’s markets.
“It is a complementary relationship that has worked exceptionally well for both jurisdictions.
“The growth in Cayman listings over the past decade also shows that this relationship continues to develop.”
Tax neutrality also counts, Cayman Finance pointed out.
A Cayman holding company adds no further layer of tax between the operating business and its shareholders, who remain liable in their home jurisdictions.
Listed Cayman companies are still bound by the HKEX Listing Rules and supervised by Hong Kong’s Securities and Futures Commission.
The ties extend to the funds industry.
Cayman funds held US$38 billion of Hong Kong portfolio assets in 2024, up slightly from $37.6bn a year earlier, according to the Cayman Islands Monetary Authority.
Cayman, the world’s largest tax-neutral fund domicile, hosts more than 31,000 institutional funds.
“As Asian businesses expand internationally and investors look for opportunities across borders, Cayman has an important role to play in supporting that activity and structural solutions that make doing business seamless across borders,” Widmer said.
Hong Kong is having a record year for listings.
According to KPMG China, 116 companies raised more than HK$388bn through initial public offerings in the first nine months of 2026, more than double the total a year earlier.
Widmer and Rayshawn Connor, associate director of funds and capital markets at Cayman Finance, are visiting Hong Kong and Singapore between 22 October and 5 November.
They will meet investment managers, capital markets participants and professional advisers to discuss developments affecting Cayman’s funds and corporate structures.
