Manulife’s local unit to redomicile from Bermuda in November

Manulife (International), the biggest pension provider in the city, plans to redomicile to Hong Kong from Bermuda in November, indicating its confidence in the city as an international financial centre, according to a notice it sent to customers on Friday.

This makes Manulife (International), the Hong Kong and Macau unit of Toronto-headquartered Manulife Financial, the second insurer to incorporate in Hong Kong after a new “game changer” law easing the redomiciliation process came into effect on May 23. Rival AXA announced a similar move soon after the change.

The legislation allows companies to establish themselves in the city while retaining their legal identity and business continuity. Previously, a redomiciling company had to wind up its existing entity and shift all assets and transactions to Hong Kong.

Manulife said in a customer notice that its decision reflected confidence in Hong Kong as a premier international financial hub.

“Redomiciling to Hong Kong allows us to better align with the city’s robust financial and regulatory environment, strengthening our ability to meet local market needs,” said Patrick Graham, CEO of Manulife Hong Kong and Macau.

The decision came shortly after Secretary for Financial Services and the Treasury Christopher Hui Ching-yu conducted a roadshow to several Canadian cities last week to promote Hong Kong, including the new regulatory regime.

The simplified process would attract more local insurers and other companies incorporated in Bermuda or other tax havens to redomicile to Hong Kong, said Karina Wong, Greater China divisional president of CPA Australia, an accounting industry body.