30N30W. I have a few questions for you.
Firstly, I'm no anagram wizard, but how did you re-arrange your name (Jayne Hrdlicka) to spell 30N30W????
On a more serious note, you're argument is chopping and changing all over the shop. (my first clue that you have no understanding about international aviation, hence my suspicion that you're in airline management)
Initially, you ask about the foreign LCCs flying into HKG, and do we want them to stop. No, they're using their side of the air services agreement, and we HKG operators use the HKG side of the agreement. It's a balance.
Then you start singing the joys of another LCC finding its home in HKG. Totally different track to your initial question. If a LCC wants to set up in HKG, then go for it. The primary requirement is that they COMPLY WITH HONG KONG LAW. Hong Kong law clearly defines the ownership and management/operations structure required to be considered a Hong Kong airline.
Pretty simple.
Dan Buster is correct about precedent, but let's take it even further beyond aviation. If we can circumvent the law on airline ownership, what other laws can we circumvent?? I'll build my house in contravention to the building code. I'll speed on the roads. etc etc. Where does it end??