Hong Kong Situation & SEC Filers

Demonstrations in Hong Kong have been increasing over the continued encroachment by the Chinese government over Hong Kong residentscivil rights, but now, US investors and US businesses with offices or subsidiaries must evaluate the impact on future revenue, tax and regulations and intellectual property preservation.

Using Kaleidoscope to perform a full-text search across all SEC filings year-to-date, we find over 480 companies headquartered or incorporated in 18 states within the US, have subsidiaries or local offices in Hong Kong. These results are distributed among 151 industries including banks, funds, pharmaceuticals, prepackaged software, and hotels. All have disclosed some level of risk and uncertainty as the economic and political situation in China evolves.

No, we didn’t manually count the numbers, because Kaleidoscope provides the filings and the quantitative metrics underlying the research.

Volume and activity, a summary of companies, industries and the types of filing forms that contain references to the search criteria are all clearly visible.

In addition, the legal and accounting experts that support the companies listed are also provided and filtered to show which companies the experts represent.

All have disclosed some level of risk and uncertainty as the economic and political situation in China evolves.  A great example is the tax disclosure from a deep-sea transportation company, April 2020, which reads as follows:

China has enacted a recent tax for non-resident international transportation enterprises engaged in the provision of services of passengers or cargo, among other items, in and out of China using their own, chartered or leased vessels, including any stevedore, warehousing and other services connected with the transportation. The recent law and relevant regulations broaden the range of international transportation companies which may find themselves liable for Chinese enterprise income tax on profits generated from international transportation services passing through Chinese ports.”

In addition, the taxation carries over to the owner of the business as a personal income tax:

“. . . provides that profits tax shall be charged for each year of assessment on every person (which includes corporations) carrying on a trade, profession or business in Hong Kong in respect of such person’s assessable profits arising in or derived from Hong Kong for that year from such trade, profession or business . . .”

To find out more about SEC disclosures on international taxation, regulations and risks, register for a free trial at www.kscope.io and follow this link for the full results of this search. Or set up alerts for real-time notifications on companies, disclosure language, people and more’ Follow us on LinkedIn or Twitter to keep abreast of new features or golden nuggets of facts found in SEC filings, transcripts, SEC News and more.

About Kaleidoscope

Kaleidoscope, the state-of-the-art in securities research, unveils critical, quantitative metrics underlying every search. Securities research is an overwhelming task without seeing the metric distribution behind the results. Data visualization is vital to workflow efficiency and pinpoint accuracy. Using data visualization technology, Kaleidoscope transforms endless lists into meaningful charts and graphs reflecting the distribution of results. It’s flexible search functionality, data visualization with metrics and robust export features is the reason why Kaleidoscope is an invaluable resource for by corporations, law firms, investment banks, accounting firms as well as consulting firms of all sorts. Visit www.kscope.io for more information.