Chinese actor Jet Li, his wife, and other associates purchased shares in a Hong Kong shell company worth $187 million on Friday, July 10. Shell companies are now viewed as the easiest way to gain entry in the Chinese stock market than launching initial public offerings.

Variety reported that Jet Li's group are now the majority shareholders of Far East Holding International, a holding corporation listed with the Hang Seng Index. 

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The Li couple forked out $148 million of the total investment. Another holding firm called Regent Pacific Business bought the 11.5 billion Far East stocks for HK$0.10 per share on behalf of Li's group, according to Reuters.

It is interesting to note that the Lis bought the shares at a very hefty discount. Far East shares had already lost 97 percent of thier value when they were bought based on their June 26 closing price, according to the information provided to the Hong Kong stock market regulators.

The ongoing crisis in the Chinese stock market has opened up opportunities for some. The Hong Kong stock market has enjoyed brisk trading recently due to the wholesale purchases of so called "shell" corporations that are listed in the Hang Seng Index.

Normally, shell corporations have little significant assets, but their main advantage is that they are already listed in the stock exchange and their shares are already being traded. Investors, who get control of one, will simply infuse the needed funds and equipment and announce what kind of business they are engaging in if the old business model is no longer applicable. The new owners can also raise further capital faster since they can issue new shares under the name of the listed corporation.

This method is far less complicated than setting up a new company and waiting for the stock regulator's approval of its initial public offering.

Far East Holding is known to have investments in several business sectors such as technology, finance, and manufacturing.

Today Online reported that Chinese regulators have placed restrictions on the country's stock market including a temporary halt in the launching of new initial public offerings to prevent the market from dropping further.

TagsJet Li, Far East Holding International, China stock market, Hong Kong Hang Seng Index, Jet Li 2015, Hang Send Index Live, Hang Send Index Futures