Hong Kong businesses have no safety net in fight for survival
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Businesses in Hong Kong do not have recourse to any corporate rescue procedure when in difficulties. Formal procedures give cash-strapped companies the opportunity to turn around, instead of immediately winding up.
PHOTO: BLOOMBERG
HONG KONG • Hong Kong is being threatened by a "tsunami-like" cataclysm, the city's finance chief has warned, as the coronavirus outbreak devastates businesses already hobbled by months of anti-government protests. The financial hub's lack of a bankruptcy process will only exacerbate the pain.
Unlike in the United States, Australia and rival Singapore, businesses in Hong Kong do not have recourse to any corporate rescue procedure when in difficulties.