China’s good fortune

With China now confirmed as the world’s largest economy by the IMF and figures from the recent Cap Gemini World Wealth report showing that Asia Pacific has now overtaken North America to become the region with the largest HNWI population, it’s clear that China already has a major impact on the global economy.  We recognise this Chinese potential, with the Asian region one of our key areas of focus.

 

A deeper understanding

The meaning of this proverb lies in the fact that we need to work on success and results in a clear and controlled manner and that often quick and unplanned actions can result in insignificant and ineffective results. Relationships follow the same philosophy; it is important to grow and nurture them in a defined and meaningful way in order to yield the best results.

Jersey Finance’s relationship with China goes back to 2005 when we began to raise the island’s profile in the key markets in the region. Over the years, there have been numerous industry and Jersey government-led visits to support our efforts as well as a series of road-show events in 2014.

This bond has been strengthened with the signing of a Tax Information Exchange Agreement in October 2010, whilst a Double Taxation Agreement with Hong Kong was signed in February 2012. Most recently, a Memorandum of Understanding was signed by the JFSC, and the China Securities Regulatory Commission, which paves the way for allowing Jersey domiciled funds to participate in the Qualified Foreign Institutional Investor and Qualified Domestic Institutional Investor programmes.

But our work in region is not simply through the promotion of products and services. More importantly, it is through educating intermediaries and the authorities in the various Chinese business regions about Jersey itself. Equipped with this knowledge, these key intermediaries and authorities become powerful advocates for Jersey and its role as a leading IFC.

This November we will host our 2015 Asia Roadshow showcasing the services Jersey has to offer Asia, in Shanghai, Hong Kong, Kuala Lumpur and Singapore. And our upcoming Links with China publication explores not just the financial ties Jersey as an International Finance Centre has with China, but also a flourishing relationship far removed from finance in our island’s agriculture, tourism and IT industries.

 

So what’s Jersey’s appeal for China?

Let’s recap on the many reasons why companies and HNWIs would want to invest with us:

  • Our long-standing, well-established track record of political and economic stability, widely appeals to all international investors. 
  • We are seen as a gateway to access international markets.
  • We have a sound regulatory reputation and investment structuring expertise.
  • The Jersey company structure is a popular listing vehicle for raising funds on the London main market, AIM and Hong Kong stock exchanges. 
  • We have the greatest number of FTSE 100 companies registered outside the UK, with 104 Jersey companies listed on stock exchanges worldwide.
  • £46 billion of the combined market capitalisation of nearly £265 billion is listed on the Hong Kong Stock Exchange. 
  • A fifth of Chinese companies listed on the AIM market are incorporated in Jersey.
  • Our fund and corporate vehicles are also becoming increasingly attractive for the listing of equity and dim sum bonds.
  • We are well positioned to act as a supporting centre to London in the RMB market, given its market access and experience in currency transactions. 

 

Building on our successes

It’s clear that we are well placed to support the needs of Chinese investors and their investment ambitions as they respond to a rapidly changing global marketplace and the increasing internationalisation of their economy. Our relationship has been built steadily and over a period of time and we are evidencing great results. We look forward to broadening and deepening this mutually beneficial relationship in the coming months.