This year, only two red-chip structured companies went public in Hong Kong, accounting for less than 5%. A few years ago, 90% of companies listed in Hong Kong were red-chip. Hong Kong law firms and investment banks used to specialize in building red-chip structures, with advantages in offshore tax avoidance. Last year, Momo's red-chip structure was already rejected by the tax authorities, and they had to pay back taxes as a domestic enterprise. Looks like the Hong Kong IPO game is about to be snatched away by mainland Chinese lawyers and investment banks