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Question 2 (22 marks),Chris & Company reviews any business opportunity and risk in Hong Kong for their client, CL, which plans to set up a branch in Hong Kong. CL is concerned about the following issues and asks for Chris & Company’s comments.,,a ‘Despite the number of newly listed companies in the Hong Kong stock market, it is not good to list our company in Hong Kong because our company’s cost of capital will decrease when the stock is cross-listed here and other stock exchanges.’ (14 marks),,b Hong Kong Disneyland opened on 12 September 2005 and is the second Disneyland theme park in Asia. However, Hong Kong Disneyland is not as successful as other theme parks in Asia because there are few advantages for the Walt Disney Co. to build a theme park in Hong Kong. (8 marks)

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