Recently, the Chongqing gas incident has been in an uproar. Enterprises related to the society and people's livelihood affect the hearts of hundreds of millions of people. The matter in Chongqing has not cooled down, and a news that Chongqing Gas's parent company, China Resources Gas Holdings Co., Ltd., is registered in Bermuda, has aroused widespread discussion in the society. What signals are released behind this phenomenon? What deep-seated economic logic is hidden? Is it because our central enterprises are not registered in China, but they are actually registered in Bermuda to avoid taxes?
China Resources Gas Holdings Limited
China Resources Gas Holdings Co., Ltd., as a state-owned listed company, its largest shareholder is China Resources Group Gas Co., Ltd., with a shareholding ratio of 60.84%.
The parent company of China Resources Group Gas Co., Ltd. is China Resources Co., Ltd., which indicates that China Resources Gas Holdings Co., Ltd. is a listed subsidiary of a state-owned enterprise with strong roots.
Bermuda: The label of a tax haven
Bermuda, the British Virgin Islands and the Cayman Islands, as world-renowned tax havens, have always been the first choice for many businesses to choose their place of incorporation. With their favorable tax policies and relaxed regulatory environment, these regions have attracted a large number of business registrations. However, as a state-owned enterprise, the central enterprise will also choose to register in such a place, which does bring questions and confusion to the general public. Shouldn't this be! Is it still a state-owned enterprise registered here?
As the "economic pillar" of the country, the business activities of state-owned enterprises and central enterprises are not only related to the development of the enterprises themselves, but also related to the country's economic security and social stability. For state-owned enterprises and central enterprises, paying taxes in accordance with the law is their unshirkable responsibility. However, when state-owned enterprises and central enterprises choose to register in tax havens, the economic logic and strategic considerations behind them will undoubtedly attract widespread public attention.
China Resources Gas Holdings Co., Ltd. operates a gas utility that is related to the national economy and people's livelihood. As an indispensable energy source in people's daily life, the price change of gas is directly related to the vital interests of thousands of households. Therefore, the business activities of China Resources Gas Holdings Co., Ltd. have a high degree of social concern.
Faced with the fact that China Resources Gas Holdings Limited is registered in Bermuda, the public's questions mainly focus on the following aspects:
1. As a state-owned listed company, why did China Resources Gas Holdings Limited choose to register in Bermuda?
2. Does this option mean that CR Gas Holdings Limited enjoys special tax incentives?
3. Will this choice have an impact on the company's business activities and social responsibility?
Generally, companies that choose to register in such places mainly look for nothing more than a few points: 1 is tax planning, 2 is convenient for international business, convenient for enterprises to carry out cross-border transactions, simplify international business processes, 3 provide greater flexibility, including capital structure adjustment, share issuance and equity transfer, 4, conducive to brand internationalization, 5) easier access to financing in the international financial market, including lower capital costs and a wider investor base, etc. However, as a central enterprise such as China Resources Group, the convenience of the above points should not be attractive to such central enterprises.
epilogue
The fact that China Resources Gas Holdings Limited is registered in Bermuda has undoubtedly raised many questions for the public. As a state-owned listed company that operates public utilities for the national economy and people's livelihood, the choice of its registered place is not only related to the company's business strategy, but also related to the country's economic security and social stability. Therefore, why did China Resources do this? It is indeed difficult for the public to understand, and I hope that there will be a reasonable explanation for such a central enterprise.