Links with China
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Links with China The appeal of using Facilitating cross-border Jersey’s crucial role in Why Jersey is an ideal Jersey structures for finance and trade where London Stock Exchange choice for wealth real estate investment Chinese investors are Markets and IPOs for management and in the UK and beyond active, including Africa Chinese companies philanthropy JERSEY FINANCE: LINKS WITH CHINA 1 Welcome to Links with China 04 Jersey’s attraction Links away from Jersey has been a leading international finance centre for more than 50 years. 06 the world of finance At the forefront of global banking, corporate services and wealth management, it has developed Real estate an offering that balances product innovation alongside high standards of regulation, world class 14 investment trends legislation and in depth expertise from a range of experienced practitioners. The following articles explore the ingredients that have given Jersey this competitive edge and Property examine the benefits to intermediaries and their clients of working in partnership with 16 holding structures practitioners in Jersey. Geoff Cook Chief Executive, Jersey Finance InvestContentsment Vehicles | Joint Ventures | Trading Vehicles | Structured Finance | Capital Raising | Investment Vehicles | Joint Ventures | Trading Vehicles | Structured Finance | Capital Raising IPOs for Chinese companies Investment Vehicles | Joint Ventures | Trading Vehicles | Structured Finance | Capital Raising | 18 Investment Ve hicles | Joint Ventures | Trading Vehicles | Structured Finance | Capital Raising 08 Gateway to London A stepping stone Investment in Africa 22 to other jurisdictions and beyond 10 Structured 24 for giving Links with China is published by Jersey Finance. InInvestvestmementnt Ve Vehihiclcleses | |Jo Joinint Vet Ventnturureses | |Tr Tradadining gVe Vehihiclcleses | |St Struructcturureded Fi Finanancence | |Capita Capital Ral Raisisining g | |In Investvestmementnt Ve Vehihiclcleses | |Jo Joinint Vet Ventnturureses | |Tr Tradadining gVe Vehihiclcleses | |St Struructcturureded Fi Finanancence | |Capita Capital Ral Raisisining g The publication highlights how businesses in Jersey and Greater China can work together in support of the strategic objectives of clients both in, and with links to, the region. It complements other publications in our ‘Links with’ series on the GCC, Africa, India and Russia. If you are interested in contributing to our ‘Links with’ series, please contact: InInvestvestmementnt Ve Vehihiclcleses | |Jo Joinint Vet Ventnturureses | |Tr Tradadining gVe Vehihiclcleses | |St Stru ructcturureded Fi Fina na nce nce Perfectly | |Capita Capital Ral Raisisin ingpositioned g | |In Investvestmementnt Ve Vehihiclcleses | |Jo Joinint Vet Ventnturureses | |Tr Tradadining gVe Vehihiclcleses | |St Struructcturureded Fi Finanancence | |Capita Capital Ral Raisisining g Lucy Braithwaite for private equity T: +44 (0)1534 836009 12 E: [email protected] www.linkedin.com/company/jersey-finance @jerseyFinance www.youtube.com/jerseyfinance About New York Jersey China 26 Jersey Finance 2 JERSEY FINANCE: LINKS WITH CHINA Jersey’s Attraction BEIJING SHANGHAI The dramatic increase in outbound investment from China has reinforced the role that Jersey, a leading International Finance Centre, can play supporting global investment strategies. HONG KONG Whilst Jersey is ideally placed for company listings, cross-border transactions and fund servicing, it is also a highly respected centre for private wealth management, attracting deposits from around the world A gateway into UK and European markets, Jersey has Hong Kong Stock Exchange where the combined market 2 become a key facilitator of capital from overseas. Jersey is capitalisation approaches US$72 billion . not a newcomer to this role, but demand for our services from China has accelerated in recent years, especially For Chinese investors, many of whom are exploring investment has not been made in the required compliance in 2012, a Tax Information Exchange Agreement between given a more liberalised approach in China to international international investment opportunities for the first time, to guide investors through the process. Jersey is committed China and Jersey in 2010 and a Statement of Co-operation investment. Whilst Jersey is ideally placed for company Jersey boasts the largest financial services workforce to the highest standards of regulation and this has been with the China Banking Regulatory Commission in 2006. listings, cross-border transactions and fund servicing, among the British Crown Dependencies and Overseas recognised by independent bodies and institutions. Jersey it is also a highly respected centre for private wealth Territories, with an impressive range of global banking was one of the first international finance centres to be Presence management, attracting deposits and investments from operations, leading offshore law and professional service placed on the Organisation for Economic Co-operation and Jersey has a strong presence in the region, with a Jersey around the world. At the heart of Jersey’s appeal as a firms, fund administrators and wealth managers. From an Development’s (OECD) ‘white list’ as having implemented Finance office in Hong Kong since 2009 and a ‘launchpad’ jurisdiction is its long standing political and economic institutional perspective, leading Chinese firms in banking internationally agreed tax standards and was rated by the presence in Shanghai, in conjunction with the China Britain stability, together with robust regulation, adherence to the and retail services have used Jersey structures as part of IMF as one of the best global international finance centres. Business Council. A number of Jersey’s leading firms are highest global standards of compliance and information their strategic planning, whilst investment firms have turned More recently, Jersey signed-up to the OECD’s ‘Early also based in the region, with recruitment underway to exchange, a mature legal system and exceptional service to Jersey for private equity investment and for property Adopters Group’ confirming a commitment to the OECD’s meet demand. A full list of Jersey Finance Member Firms levels. acquisitions and sales. Jersey is also appealing to the new Common Reporting Standard, which looks towards and their contact details can be found at increasing numbers of ultra and high net worth individuals the implementation of a new single global standard for www.jerseyfinance.je/member-directory. Experience in China seeking to protect their global assets, through automatic exchange of information. trusts, foundations and other entities, and to further their With an excellent track record and business environment, Jersey’s expertise in financial services has grown from philanthropic objectives. Jersey’s Government and its financial services regulator, the over 50 years of experience in trust and estate planning, Jersey Financial Services Commission, have signed bilateral and in a central time zone covering the closing of business banking, corporate structuring and asset management. Transparency agreements and Memorandums of Understanding (MoUs) in China and the opening of business in the US, Jersey Over US$206 billion is held on deposit by Jersey’s banks, with their counterparts in over 90 countries. In Greater continues to grow in size and stature as a world class whilst Jersey fund administrators currently administer In an era of increasing transparency in financial services, International Finance Centre. It is therefore ideally placed 1 China, Jersey has a strong framework of co-operation and and manage US$336 billion of assets . Within the capital the choice of jurisdiction for international investment has to support the needs of corporate and private clients in information exchange following the signing of a MoU with ■ markets sector, there are 104 Jersey companies listed on taken on added significance. Naturally investors will have the China Securities Regulatory Commission in 2014, a the region. stock exchanges worldwide, including a number on the concerns if international standards have not been met or Double Taxation Agreement between Hong Kong and Jersey 1 Jersey Financial Services Commission (June 2015) converted from GBP to USD in September 2015 4 JERSEY FINANCE:2 ‘Jersey Holding LINKS WITH Companies CHINA as Listing Vehicles - Factsheet’ from Jersey Finance (May 2015) converted from GBP to USD in July 2015 JERSEY FINANCE: LINKS WITH CHINA 5 Jersey and China The relationship between Jersey LINKS and China is well established, thanks away to excellent political, commercial and Jersey students from Hautlieu School work collaboratively from the community links with Bayi students during a Design and Technology class at Bayi Schools twinned Hautlieu School in Jersey has been twinned with Beijing Bayi WORLD Middle School since 2010. Nearly 200 Bayi students have visited the Island since then, spending time at Hautlieu, of immersed in lessons, learning more about Jersey and visiting historic landmarks. 175 Hautlieu students have visited China since 2010, with 102 students attending lessons at Bayi School. These mutual exchanges are now FINANCE offered annually. The visits have afforded the Jersey students numerous opportunities including experiencing the Chinese education system and learning more about China’s rich heritage. These experiences have inspired creative music, performance pieces, creative writing and factual reporting. Teachers have also benefitted in terms of sharing good practice