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

Geoff Cook, CEO at Jersey Finance. Photo provided to China Daily.

Over 43 Chinese companies are listed on London's AIM market, and nearly a third are using Jersey as their base. Jersey signed a Tax Information Exchange Agreement with China in October 2010, and maintains an office in Hong Kong, according to Jersey Finance's website.

"It is Jersey's intention to continue to raise its profile in the key markets in China. We plan to raise awareness of Jersey, not simply through the promotion of products and services but more importantly, through educating the intermediaries and the authorities in the various business regions of China about the jurisdiction itself," says Cook.

He continues, "Providing these key intermediaries and authorities with a better understanding of Jersey and its role as a leading IFC, remains the key to Jersey's growth in China and we intend to continue to focus our efforts on reaching these audiences in the Asian markets".

According to Jersey Finance, demand from Chinese companies looking for a tax neutral jurisdiction in which to establish a listing vehicle, has been particularly strong, with five more Chinese groups listed on London Alternative Investment Market in the last 24 months.

Appleby, a provider of offshore legal, fiduciary and administration services, is one of the Jersey-based companies which advised two recently listed Chinese groups, Camkids Group Plc and JQW Plc.

"In a backdrop of economic reform, domestic demand in China is starting to gather momentum. Chinese companies, raising finance for expansion, are increasingly looking for a tax neutral jurisdiction in which to establish their listing vehicles – and Jersey expertly fits the bill," says James Gaudin, a partner at Appleby.

Gaudin adds that the Chinese business community is becoming more aware of listing requirements, which is reflected in the strong demand being seen from Chinese originators across all sectors.

He believes that Appleby's success with Chinese clients is a combination of the firm's reputation, expertise, strong presence in both Shanghai and Hong Kong, together with good links between the Jersey team and key market intermediaries.