Jersey lures China businesses in its role as an international finance centre

The International Finance Centre hub of St Helier, the capital of Jersey. Photo provided to China Daily.

More and more Chinese businesses are using Jersey holding companies as listing vehicles to raise funds on the London Stock Exchange and other global bourses, attracted by the island's stability, tax-neutral environment and a comprehensive legal structure.

Jersey is constitutionally a possession of the British crown, although as a democratic self-governing territory with its own financial, legal and judicial systems, it stands apart from the UK, with the ability of self-determination. It relies only on Britain for defence.

Recent Capgemini World Wealth data show that Asia Pacific has now become the region with the largest number of high net worth individuals, a sign that China is already having a major impact on the global economy.

Jersey, in common with other leading International Finance Centres (IFCs), is keen to benefit from China's growing economic and commercial muscle.

Using a Jersey company as the vehicle for an IPO may enable a foreign trading group to access London's capital markets without being liable for UK tax, and the directors and management can be based in Jersey.

"Thanks to Jersey's internationally recognised regulation, our position as a gateway to western markets, and our range of investment structures, Jersey is well placed to support the needs of Chinese investors and their investment ambitions," says Geoff Cook, Chief Executive Officer at Jersey Finance, a not-for-profit organisation representing and promoting Jersey as an IFC, adding that the Jersey views China as an important market, given its enormous economic growth in recent years. Jersey Finance is based in the Jersey capital of St. Helier.

Jersey Finance has been promoting the island's finance industry in China since 2005 and building on the success of the inaugural road-show events of 2014, this November it will again host a series of road-shows showcasing the services Jersey has to offer Asia, in Shanghai, Hong Kong, Kuala Lumpur and Singapore.

Through seminars devoted to either the wealth management industry or Jersey's fund services, the events will discuss current trends in these industries, the role of IFCs and how Jersey is delivering a high quality services tailored to the changing needs of the Asia and China marketplace.