Jersey Links with China

www.jerseyfinance.je

Learning first hand about Jersey’s finance industry

Building on Chinese success so far

Opportunity in Greater China

Bankingin Jersey

Jersey Foundations: a new string to Jersey’s bow

Jersey Foundations in action

Hong Kong Stock Exchange listings & IPO update

New Secondment Exchange Programme

Featuring:

Jersey LinksA focus on Jersey’s international profile

Jersey’s growing links with China

www.jerseyfinance.je Jersey Links | Greater China 1

Contents

Jersey’s growing links with China ..........................................................................2

Opportunity in Greater China ..................................................................................4

Building on Chinese success so far ........................................................................6

Hong Kong Stock Exchange listings and IPO update .........................................8

Jersey Foundations: a new string to Jersey’s bow ..............................................9

Jersey Foundations in action ................................................................................ 10

Banking in Jersey ..................................................................................................... 12

Learning first hand about Jersey’s finance industry ....................................... 14

New Secondment Exchange Programme ............................................................ 16

Jersey Links | Greater China www.jerseyfinance.je2

Jersey’s growing links with ChinaJersey’s financial services industry is ideally placed to support the needs of corporate and institutional business and private clients in Greater China.

Through our ongoing engagement with intermediaries, lawyers and financial

advisers, this message is now being conveyed more effectively than ever. The

opening of a Jersey office in Hong Kong, the sizeable delegations visiting the

region on a regular basis and the increasing banking deposits from the Far

East now lodged with Jersey banks all demonstrate our growing links with

Greater China.

Banking deposits in Jersey are currently at £167 billion. Almost 60% of the

total value of deposits in Jersey banks is held in non sterling currencies and

20% is from emerging market economies. Most pertinent to current trends is

that the Far East now accounts for over 6% of total banking deposits, which is

nearly double last year’s figure.

By Geoff CookChief Executive, Jersey Finance

Jersey Links | Greater China www.jerseyfinance.je


In 2009 significant strides were taken in developing

business when Jersey companies were approved for

listings on the Hong Kong Stock Exchange. As part of the

approval process, the Hong Kong Exchange had to satisfy

itself that under Jersey law shareholder protection was at

least equal to that in Hong Kong. United Company RUSAL

Plc, the world’s largest aluminium producer, was the first

example of a Jersey incorporated company listed on the

Exchange. More recently, West China Cement Limited

became the first Chinese business held through a Jersey

company to be listed. Others are anticipated.

Head of Greater China Business Development in Jersey

Finance’s Hong Kong office in the Central Tower, Queen’s

Road Central, is Zhaoan Li, an investment and sales

specialist with extensive knowledge of the region. Not

only has Jersey’s presence in the region been enhanced

by the opening of an office and by more frequent visits

by Government and regulatory officials and Jersey based

professionals, but the contact has encouraged greater

interest amongst the Chinese to visit Jersey.

Last year, the Chinese Ambassador to London paid an

official visit to meet Government officials, the regulator

and senior representatives of the finance industry.

This year Jersey has welcomed a delegation of leading

business people from Tianjin, who visited to learn more

about the services available from the jurisdiction.

Jersey Finance plans to host another delegation to

Beijing, Shanghai and Hong Kong in November. In the

meantime Jersey’s Treasury Minister, accompanied by

the chief regulator, have been in Shanghai attending

the Lujiazui Forum, a global platform for influential

government representatives and world financial leaders

to discuss international financial cooperation. In

addition, a Tax Information Exchange Agreement has

recently been negotiated and is due to be signed shortly.

Such are the growing official and business ties that a

scheme has been established enabling lawyers from a

Shanghai based law firm to work in Jersey on secondment,

while local lawyers are doing the same in Shanghai. Also, a

microsite in Mandarin linked to the Jersey Finance website

is under construction so that Chinese intermediaries and

investors can learn about the services available from Jersey

in their language and with a focus on their bespoke needs.

Here at Jersey Finance we recognise that it is crucial to visit

our key markets regularly and to consistently explain our

services and highlight the appeal of our jurisdiction. If not

present talking about legislative developments and the

modernisation of the products and services, a jurisdiction

can quickly fall away in terms of awareness. We will draw

attention to recent improvements to our legal framework

including company law changes, the success of the new

Jersey Foundation vehicle and the introduction of new limited

partnerships, and also to Jersey’s record in achieving top

marks when its regulatory regime has been reviewed.

Chinese investors are rightly concerned that their money is

managed in a well regulated jurisdiction, where corporate

governance is strong. As ties with China are strengthened,

Jersey will promote its reputation, governance and expertise,

while responding to the specific requirements of investors

based in the key markets in the region.

It is crucial to visit our key markets regularly and to consistently explain our services and highlight the appeal of our jurisdiction


Raising awareness

Raising awareness of Jersey, not simply through

promotion of products, but more importantly through

educating the intermediaries about the jurisdiction itself,

is still key to our growth throughout the region.

This year Jersey Finance will again be a sponsor and

exhibitor at STEP Asia in November, the premier event for

trust and estate practitioners in Hong Kong, where we will

be showcasing Jersey’s range of services and taking the

opportunity to educate those delegates not so familiar

with the variety of wealth management products available.

Alongside conferences, Jersey Finance and Jersey trust

practitioners have been holding seminars with the

Hong Kong Trust Association and meetings with local

professionals, tax advisers and other intermediaries to

update them on the latest offerings from Jersey, such as

the Jersey Foundation vehicle.

Wealth Management – wider options for investors

Since the abolition of estate duty in Hong Kong in 2006,

trusts as wealth management tools are increasingly used

for succession planning and asset protection rather than

for tax purposes. However, we were delighted when the

Foundation vehicle also joined Jersey’s legislative statute

last year, since this widens the options for investors.

Key features of the Jersey Foundation vehicle include

its separate legal personality, its shareless corporate

status, its recognition by civil law jurisdictions, its infinite

duration and its adaptable level of founder and guardian

control depending on the private or commercial objectives

of the founder.

In mainland China we believe there are many opportunities

for wealth management professionals. China’s most recent

statistics show that economic growth has accelerated

to the highest rate in nearly three years to 11.9% during

the first quarter of 2010, benefiting from a low base

comparison last year and the momentum from massive

stimulus packages. With wealth accumulating at record

speed in China and with waves of emigration from China to

the UK for both education and business purposes, there is

a steady growth in Private Discretionary Trusts.

Opportunity in Greater China

We cemented this objective last year with the opening of a Jersey Finance

office in Hong Kong. This move has been well received and has proved a

valuable base from which to network and build business contacts.

When we embarked on our most recent marketing drive in the region we did so

confidently in Hong Kong where the trust concept is familiar to many finance

professionals. However we also understood that the situation is different in

mainland China. So one of our priorities has been to familiarise the finance

community in some of the leading finance centres in China with the benefits

and uses of a typical trust vehicle.

We are ideally placed to support the needs of corporate and private clients in the region

By Zhaoan Li Head of Greater China Business Development, Jersey Finance

Jersey Finance has been highlighting its long term appeal in the Greater China region by arranging an increasing number of visits by delegations from Jersey, by participating in top level conferences and through a greater presence in the location.


Jersey’s proximity to the UK and its well established

track record as a trust jurisdiction makes it an extremely

favourable regime for the establishment of Private Trust

Companies (PTC).

Typically a PTC will be a limited liability company in

Jersey with the shares owned by the family concerned or

more commonly by a purpose trust. Either way the family

can control the composition of the board of directors and

in this way can obtain a degree of certainty that the assets

of the underlying trusts will be managed in a manner that

meets their approval. In Jersey a PTC can be established

on a fast track basis within 24 hours.

PTCs have become increasingly popular with high net

worth individuals looking to establish a form of family

office structure involving the administration of trusts of

which the PTC will be trustee.

International recognition

Our decision to invest increasing time in developing

a presence in the region arose at an auspicious time

since it coincided with Jersey obtaining greater

recognition internationally for the quality of its

regulatory regime and its commitment to transparency

and high standards of corporate governance. For

the powerful new emerging economies in Asia, these

issues are naturally important and advisers in these

countries, particularly those who may not have worked

with Jersey before, will have been reassured by recent

independent endorsements from organisations such

as the International Monetary Fund - where Jersey has

obtained the best review of any jurisdiction to date of

its regulatory and supervisory capabilities.

The world economy is recovering. If you look at the

emerging markets and Asia in particular, it is apparent

that they have come out of the slowdown faster than the

US and other European economies. From Jersey’s point

of view, we think it is important that we capitalise on this

resurgence and capture the renewal in business activity,

for we are ideally placed to support the needs of corporate

and private clients in the region.


This is particularly the case in the Asian region as China

develops and is likely to become the world’s biggest

economy in only a matter of years.

Equally important is recognition by foreign financial

regulators and governments. The approval in 2009 of

Jersey as an ‘approved jurisdiction’ for the purposes of

listing on the Hong Kong Stock Exchange, and the listing

there of the first Jersey incorporated company, United

Company RUSAL Plc¹, certainly created considerable

awareness, publicity and many column inches in

the Chinese press! Subsequent to that listing, Jersey

incorporated West China Cement became the second to

list in the Hong Kong, having delisted from London’s AIM.

With many Jersey companies already in use around the

world, these listings represent the first wave to access

Asian capital on the region’s exchanges.

The time and effort invested by Jersey’s finance industry

in building relationships between Jersey, Hong Kong and

China has certainly been beneficial so far, but it is not

the end of the work required. Jersey has more to do in

developing relationships with the Chinese.

Opportunities

As far as Jersey companies are concerned, the robust but

reasonably flexible Jersey regulatory regime, together with

laws and corporate governance principles internationally

acceptable to business, are very attractive to issuers and

investors alike when raising money. For similar reasons,

there should be no reason why Jersey companies and

other entities should not be attractive in the investment

funds sector in the region. Perhaps most importantly

of all, the stature and reputation of Jersey’s trusts laws,

coupled with the vast experience of the professionals

working in the area and the widely recognised and effective

judicial system to uphold and protect rights, makes private

client work the most attractive target. Indeed, China is

a country with one of the fastest growing number of

millionaires in the world.

But that’s only half of the picture - there are many

Jersey businesses which have good relationships with

Chinese clients and taking into account the size of

Chinese economy, that business represents a very small

proportion of the total that is potentially available.

Jersey has some huge benefits to offer; it has an

impressive track record and the ability to provide

some real advantages to clients in comparison to

other international financial centres.

However, there is a growing need to have professionals,

particularly law firms, on the ground, able to serve

their clients’ needs personally and in the clients’ time

zone. That physical presence is very important as those

who deal with Chinese and Asian clients will know, the

personal trust and relationship which needs to be built

is one which is developed over a period of time and

many contacts.

Building on Chinese success so far

Until recently there had not been any Jersey lawyers in Asia, but that changed this year with the transfer of Jersey based lawyers to Ogier’s existing Hong Kong office

Jersey’s continued recognition as the highest rated offshore international finance centre in the latest Global Financial Centres Index remains vitally important in the drive by Jersey’s finance industry to diversify its client base around the world.

By Marc Yates Partner, Ogier

1Marc Yates acted for UC Rusal in its dual Hong Kong and Paris listings in January 2010.


The stature and reputation of Jersey’s trusts laws, coupled with the vast experience of the professionals working in the area and the widely recognised and effective judicial system to uphold and protect rights, makes private client work the most attractive target

Jersey lawyers in Hong Kong

Until recently there had not been any Jersey lawyers

in Asia, but that changed this year with the transfer

of Jersey based lawyers to Ogier’s existing Hong Kong

office. There are other global offshore law firms with

both Jersey and Hong Kong offices and they, as well

as other Jersey financial services businesses, are now

looking at building more physical presence in Asia to

take advantage of the opportunities there. In doing so,

Jersey as a jurisdiction will increase its exposure there

and more business will be generated back in Jersey,

where the infrastructure of the jurisdiction in the form

of expertise, registries and regulation exist.

The future

There are two important facts to note. The first is

that the signing of a double tax treaty with mainland

China is vital. Negotiations regarding a Tax Information

Exchange Agreement between Jersey and China have

recently been completed, so a positive business and

political relationship is already being established.

The second is that some of the Chinese mainland stock

exchanges have grown even quicker and bigger than

Hong Kong and, when they open up to non-Chinese

companies being able to list there, that will create

all sorts of new opportunities for Jersey in assisting

businesses with Chinese connections to take advantage

of that. Whilst growth in Jersey business can only

be achieved by the private sector undertaking that

business, the negotiation of information exchange

agreements and double tax treaties at the government

and regulator level will, in the long term, produce more

benefits and, generally, will be essential in ensuring

that as many opportunities as possible are open

to Jersey.


those markets on a basis that is not open to many other

competitor jurisdictions.

The WCC listing follows on from an increase in activity

in the Initial Public Offering (IPO) market, which has

directly affected business levels in Jersey. Carey Olsen,

along with other law firms, is experiencing an increase

in transactions in this sector across a variety of markets.

The pick-up in global equity markets has led to increased

appetite, from a low base, for IPOs from which Jersey has

benefitted. Jersey therefore continues to be a popular

jurisdiction in which to incorporate listing vehicles - a

trend which it is hoped will continue in the Greater China

market going forward.

Hong Kong Stock Exchange listings and IPO update

The global offering, which comprised of a Hong Kong

public offering and an international placing, was

substantially oversubscribed and raised approximately

HK$1,280 million. WCC de-listed from AIM in conjunction

with its admission to the HKEx. Carey Olsen advised WCC

on the Jersey legal aspects of the transaction, which went

smoothly from a Jersey perspective, with no material

Jersey issues.

While Jersey and Hong Kong company law are largely

based on English company law, where there are

differences between the two, the HKEx will expect any

issues to be bridged by way of amendments to a Jersey

company’s articles of association (its key constitutional

document). To all intents and purposes, the protections

and control afforded to shareholders and the company’s

internal management will therefore largely reflect the

norm under Hong Kong law and will be in line with

market expectations.

The WCC listing is a landmark transaction for Jersey.

Typically, Jersey companies are mainly used for listing

on the London market (both Main Market and AIM), as

has been seen by the recent successful listing on AIM of

Asia Ceramics Holdings plc. However, listings of Jersey

companies have also been made on Euronext, NASDAQ,

the Australian Stock Exchange and other exchanges

both in Europe and North America. The ability to list

in Hong Kong, together with the advantages of using

Jersey companies to list on the London market (Takeover

Code application, CREST settlement, no stamp duty, tax

neutrality and a flexible yet recognised company law

regime), now opens the possibility of dual listings on

By Guy ColtmanPartner, Carey Olsen

Following the decision of the Hong Stock Exchange to approve Jersey as a jurisdiction of incorporation for admission to the Exchange, the first Chinese business held through a Jersey company has been listed successfully.

West China Cement Limited (WCC), a leading cement producer in the Shaanxi province of

China and recognised in 2009 by Forbes magazine as one of ‘Asia’s 200 Best Companies with

a Market Capitalization Under US$1billion’, completed its global offering and listing on the

Hong Kong Stock Exchange (HKEx) on 23 August 2010.


The Qualified Person will be required to file a Charter

with the Registrar at the JFSC. The Charter will have to

specify the objects of the Foundation and unlike other

jurisdictions, Jersey will not require a Foundation’s

objective to be non-profit making.

Many see the advantages of a Foundation as follows:

• It can be used for general commercial transactions

provided that they are incidental to the attainment

of its objects

• It can be seen as an alternative to Trusts,

particularly in parts of the world where the concept

of Trusts are unknown or alien

• Charities and Philanthropic organisations can use

Jersey Foundations as a vehicle for distribution

In relation to taxation, Foundations are treated like

Jersey Companies, i.e. liable for 0% tax under the new

0/10 system. However, the service provider is required to

notify the Income Tax Department if there are any Jersey

resident beneficiaries. The UK has no provisions for

Foundations for any of its taxes.

As Jersey thrives in areas such as Wealth Management,

clients seeking a viable alternative to a Trust or Company

are finding that a Jersey Foundation just suits their needs.

Jersey Foundations: A new string to Jersey’s bow

The new Foundations (Jersey) Law came into force in July

2009. This new legal entity of a Foundation is a combination

of a Trust and a Company and its characteristics can be

summarised as follows:

• It can hold assets in its own name

• It can enter into a contract, it can sue and be sued in

its own name

• It has a Council of Members to administer the

business of the Foundation

• There are no shareholders, hence some refer to it as

an Orphan Entity

• It can have one or more objects, which can be

either charitable or non-charitable and/or be for the

benefit of one or more beneficiaries

A Foundation is established in a similar way to a

Company. Instead of Subscribers, a Founder is the person

who calls for the Foundation to be incorporated. However,

only a Qualified Person, someone who is registered with

the Jersey Financial Services Commission (JFSC) to carry

on Trust Company Business, can apply for the incorporation

of a Foundation, but a Founder can instruct a Qualified

Person to apply on the Founder’s behalf.

By Oliver DonagherAssociate Director, Horizon Group

Like the foundations of a house,

Jersey has in recent years been

working on a law to strengthen

its foundations as a world-class

leader in the field of Offshore

Financial Services.

www.jerseyfsc.org


Jersey Foundations in action

The Foundation structure offers greater privacy to a Founder than is achievable presently with Trusts

Foundations have been most popular amongst individuals owning assets in

Continental Europe, though Jersey is now seeing increased interest from clients

in Hong Kong, Russia and the UK. Most Jersey Foundations are brand new

incorporations, with one exception to date being a continuance of an existing

Liechtenstein Stiftung. The continuance process worked well, so this should

help pave the way for future migrations of Foundations to Jersey.

By Giles Corbin Partner, Mourant Ozannes

Since the Foundations (Jersey) Law 2009 came into force, we have seen a diverse range of practical applications to satisfy philanthropic, private and purpose objectives.

• The Jersey Foundation has civil law recognition as a

separate legal personality.

• The Foundations Law is drafted in a very permissive

way which gives great flexibility to the way in which a

Foundation is internally administered and externally as

to how it provides benefit.

• There can be a high degree of Founder involvement

where desired and appropriate for tax or legal reasons.

• The Founder has a high degree of freedom to restrict or

positively prescribe the flow of information to beneficiaries.

• The integral safeguards of the structure are the

omnipresent Guardian (supervisor of the Council

Members) and the accountability of Members to

the Foundation and regulatory oversight over the

cornerstone Qualified Member by the Jersey Financial

Services Commission (one of the Council Members must

be a license holder with the Commission).

• A Jersey Foundation can have non-Jersey non-licence

holding resident individuals or corporations acting as

Council Members (to sit alongside the Qualified Member).

• It can have non-Jersey non-licence holding resident

individuals or corporations, or committee of two or

more thereof, acting as Guardian if desired.

• Jersey is a highly respected, well regulated and stable

jurisdiction, with a quality kitemark of administration,

legal and accountancy services.

• Jersey boasts a skill set groomed over the past 50 years

in company and trust administration that transfers

perfectly to the practical operational aspects of

administering Jersey Foundations.

• Jersey Foundations are safeguarded by robust,

internationally respected Royal Court judgments and by

the Privy Council being the ultimate court of appeal.

Why a Jersey Foundation? Founders select the Jersey structure for a compelling combination of reasons:


What are Jersey Foundations being used for?

The diversity of uses to which this flexible new

structure has been employed is impressive. The

three main streams of Foundations instructions

being received are as follows:

1. Jersey Philanthropic Foundations

Sophisticated Ultra High Net Worth

philanthropists are using Jersey Foundations

and, in part, the attraction lies in the name

itself. ‘Foundation’ is such a popular moniker

for philanthropic structures that a number of

charitable organisations bear that name, even

though they are trusts (for example ‘The Bill

and Melinda Gates Foundation’). The word

‘foundation’ suggests solidity and permanence,

a body firmly anchored to the ground by virtue

of publicly transparent registration. The Jersey

Foundation has all these attributes making it

suitable for those wishing to leave a legacy for

long term philanthropic objectives.

2. Very Private Jersey Family Foundations

The Foundation structure offers greater privacy

to a Founder than is achievable presently with

Trusts. Beneficiaries of discretionary Jersey

Foundations do not have any interest in the assets of the

Foundation, nor any statutory right to see the accounts

or non-public papers relating to the Foundation. The quid

pro quo for the severance of direct accountability to the

beneficiaries is the accountability of Council Members to the

Foundation itself and the fact the Guardian is specifically

charged with taking such steps as are reasonable in all the

circumstances to ensure that the council of the foundation

carries out its functions.

Founders who own assets located in civil law countries,

including China, Russia, most of continental Europe, Asia

and Latin America, naturally favour structures with the

DNA of a Civil Law vehicle. This is where the corporate

(distinct legal entity) quality of the Jersey Foundation

really makes the difference. It is not only important for

recognition but also makes for simpler structures because

it negates the necessity for a company to underlie a Trust,

potentially saving separate company administration fees.

3. Jersey Orphan Foundations

The Jersey Foundation is proving popular as an

advantageous alternative to the Purpose Trust. Having

no shares in issuance makes the Foundation the perfect

natural orphan vehicle. As a corporate vehicle in its own

right and therefore recognised in its own name, there

are no private beneficiaries who might feel vulnerable in

the event of legal action. There is often also a cost and

complexity saving in using a Purpose Foundation as it

provides a more comprehensive solution in one vehicle.

Thanks to the flexibility of the Jersey Foundation, its use

is only really limited by the imagination of the Founders

and their professional advisers. In its first year the Jersey

Foundation has enjoyed great success. The structure has

already been put to a myriad of uses and this trend looks

set to continue.


As banks and their clients expand their businesses

internationally, there is a requirement to provide

services from jurisdictions that can facilitate efficient

international financial services in a tax neutral

environment, which simplifies investments for non

residents. Jersey is such a location.

Jersey banking services have been catering for the needs

of ‘internationally mobile’ individuals for many years.

Products and services have been specifically designed

for this client base. As private wealth has increased

generally over the years and individuals have relocated

and/or sought to invest in other jurisdictions, the

banking industry has adapted to meet those needs.

The use of offshore investment vehicles such as hedge

funds and private equity have placed further demands

on Jersey banks, who have responded with increasingly

sophisticated products and services.

For Chinese banks seeking to expand their businesses

globally to assist their clients, the opportunities

provided by Jersey should not be ignored. As clients

relocate, or businesses invest into new jurisdictions,

there are many ways in which a Jersey presence can

assist in terms of retaining clients and in identifying

further growth opportunities.

Banking in Jersey

These banks come from the United Kingdom, Europe, the United States, Canada, South

Africa and the Gulf. Banks are attracted to Jersey thanks to its political and economic

stability and its legal and regulatory environment. With a history of providing banking

services to clients all over the world for almost 50 years, Jersey is truly one of the

world’s top international finance centres.

For Chinese banks seeking to expand their businesses globally to assist their clients, the opportunities provided by Jersey should not be ignored

By Joe Moynihan President of the Jersey Bankers Association Managing Director, AIB Bank (CI) Limited

Jersey has an excellent reputation in the banking industry with 45 banking license holders, including branches and subsidiaries of some of the world’s leading banks.


Should a bank wish to consider setting up an operation in Jersey, there are a number of options available

• It is possible to set up a wholly owned subsidiary in

Jersey. This option has been used by many banks and

involves setting up a Jersey company, requiring capital.

This would normally involve acquisition of premises,

staff etc.

• Another option is to set up a Jersey branch of the

parent bank. The branch does not have the same level

of corporate governance overhead and does not require

capital. This would usually entail a physical presence

with staff, premises etc.

• Jersey based businesses are used for joint ventures,

collaborations and partnerships. It would be possible

for a Chinese bank to enter into an arrangement

whereby clients are introduced and become clients

of another Jersey bank, in order to ‘test’ the market.

Should the Chinese bank then decide to set up an

operation, clients would be invited to transfer accounts

to the bank.

• Jersey regulations also provide facilities for banks

to operate as ‘managed banks’. This means that an

existing Jersey bank acts as ‘manager’ of the Jersey

bank/branch, taking responsibility for the operation.

This arrangement is often suitable for ‘start up’

situations and may result in conversion to full bank

arrangements in the future if required.

Chinese banks considering opportunities in Jersey should

contact Jersey Finance to arrange introductions to the

Jersey regulator and meetings with other professionals

in the industry. The Jersey Bankers Association, which

supports the strong and diverse banking industry, would

also be happy to assist.

For further information, visit www.jerseyfinance.je and

www.jerseybankersassociation.com.

Setting up in JerseyUnder Jersey regulations only banks in the world’s top 500 or banks of systemic importance in their country of origin are allowed to operate from the island. Should a bank wish to consider setting up an operation in Jersey, there are a number of options available;


Delegation from Tianjin visit JerseyJersey recently welcomed a group of leading business

people from Tianjin, who visited to learn more about

the services available from the jurisdiction. Tianjin is

one of the fastest growing finance centres in China and

in recent years the private equity fund sector has been

developing at an extremely high rate.

Led by Mr Wu Dong, Deputy Director of Dongjiang

Free Trade Port Zone of Tianjin, the group met

with representatives from the States of Jersey,

the Jersey Financial Services Commission and the

Finance Industry to find out how Jersey operates

as a major international finance centre in terms

of policy, regulation, tax, foreign exchange, trade

and finance. The delegates were keen to learn how

they can work with Jersey to foster strong business

relationships, especially in the ship and aircraft

leasing and financing area, which has seen significant

development since 2009.

The trip was extremely successful. The delegates

were impressed with everything Jersey has to

offer as a diverse and sophisticated finance centre

and Jersey hopes to build on this momentum and

establish a strong relationship with this important

city in China in the long term.

Learning first hand about Jersey’s finance industry

This has been complemented by regular visits to China by delegations from

Jersey, frequent participation in top level conferences and many seminars and

meetings with local professionals and associations. These trips by Government

and regulatory officials and Jersey based professionals to the region have also

encouraged greater interest amongst the Chinese to visit Jersey.

By Jackie Maratier Events Manager, Jersey Finance

Many steps have been taken in recent years to strengthen Jersey’s standing in Greater China. A permanent physical presence in the region was established in 2009 with the opening of a Hong Kong office.

Zhaoan Li and Geoff Cook, Jersey Finance, with Zhang Zhongdong

and Wang Xiang, Policy Research Office of Dongjiang Free Trade

Port Zone of Tianjin


Many steps have been taken in recent years to strengthen Jersey’s standing in Greater China

Jersey officials attend the Lujiazui ForumJersey’s Treasury Minister, accompanied by the Director

General of the Jersey Financial Services Commission

and Jersey Finance’s Head of Greater China Business

Development, attended the Lujiazui Forum in Shanghai

recently. The Forum is a global platform for influential

government representatives and world financial leaders

to discuss international financial cooperation.

Before the Forum, the Treasury Minister attended

meetings in Hong Kong with government officials

including the British Consulate-General and the Head of

Listings at the Hong Kong Stock Exchange.

Next Jersey Finance visit to Beijing, Shanghai and Hong KongRepresentatives of Jersey’s Finance Industry will visit

China and Hong Kong in November, the second official

trip of 2010. Led by Jersey Finance Chairman Jonathon

White and Hong Kong based, Zhaoan Li, the team will

continue to build relationships with intermediaries

in the financial services sector through meetings and

single firm presentations.

The delegation will also have a strong presence at the

STEP Asia Conference, the premier event for trust and

estate practitioners, which is taking place this year in

Shanghai from 3rd to 5th November. They will showcase

the range of services available from Jersey and take the

opportunity to enlighten delegates not yet familiar with

the variety of wealth management products available.

If you are interested in participating or meeting the

team in Beijing, Shanghai or Hong Kong, please contact

[email protected].


New Secondment Exchange Programme

Jersey firms are partnering with King & Wood, one of the largest law firms

in the region. The Secondment Programme has received a very positive

response from both Chinese and Jersey lawyers and it is hoped that the

scheme will become a long term arrangement. Lianghua Wang (Mike),

Partner at King & Wood, has been instrumental in helping to establish

this programme. The first Jersey participants, Lauren Fletcher and Claire

O’Boyle, headed to Shanghai recently for a period of three months. King &

Wood will send a number of their lawyers to work on a secondment basis

in Jersey firms in the near future.

‘ Jersey has made great strides in building a strong relationship with China in recent years - initiatives like this Secondment Programme really help to reinforce that relationship’ Geoff Cook - Chief Executive, Jersey Finance

Legal professionals in Jersey and China are benefitting from a newly established Secondment Exchange Programme that has been designed to further strengthen Jersey’s growing business links with Greater China.

By Zhaoan Li Head of Greater China Business Development, Jersey Finance

Geoff Cook, Chief Executive, Jersey Finance, said ‘Jersey

has made great strides in building a strong relationship

with China in recent years, through regular visits to the

Far East, the appointment of Zhaoan and the opening of a

representative office in Hong Kong last year.

Initiatives like this Secondment Programme

really help to reinforce that relationship. Not

only will it give Jersey lawyers the opportunity to

gain experience in a key market, it will also enable

Chinese lawyers to come and see for themselves

the kind of high quality work that is done here.’


representatives of local companies and city firms with

offices in Shanghai) to highlight the benefits of Jersey in

respect of both inbound and outbound investment, IPOs

and private wealth, and to gain a greater understanding of

the approach to business in the region.’

Claire O’Boyle also joined King & Wood on secondment

recently. As an Associate in the Corporate Department

at Carey Olsen, Jersey, Claire’s area of expertise is in

corporate finance, particularly AIM and Main Market LSE

listings, mergers and acquisitions and general corporate

transactions. Before leaving Jersey for Shanghai, she was

working as part of the Carey Olsen team advising West

China Cement Limited on its successful global offering

and listing on the Hong Kong Stock Exchange (HKEx).

At King & Wood Claire is working in the Securities

Department and is finding the chance to assist on HKEx

IPOs a great opportunity to become more familiar with

how the Exchange works. Claire has also been assisting

on a NASDAQ IPO from the underwriter’s side and has

attended various marketing and networking events.

She commented ‘Being able to see at first hand the

rapidly expanding and advancing nature of China’s - and

particularly Shanghai’s - economy and development

and to gain a better understanding of how business is

conducted in this region has been hugely beneficial. King

& Wood is one of the biggest law firms in China so the

quality of the transactions in terms of value, complexity

and clients is very high.’

The new Secondment Programme is an exciting

development for Jersey. The ongoing transfer of

knowledge and skills between the jurisdiction and China

will undoubtedly serve to strengthen links and develop

business in the region.

First Jersey participants

Lauren Fletcher, Associate in the Business and Trust Law

Group at Ogier, Jersey, recently began her secondment at

King & Wood. Lauren specialises in investment funds (both

listed and non-listed), corporate, finance and debt listings.

As a Legal Secondee in the Foreign Direct Investments team

at King & Wood, Lauren has been assisting with a wide range

of matters including legal due diligence on potential

domestic acquisitions, silver and aluminium purchases,

intellectual property rights, breach of contract, shareholder

activism, import and export laws, structuring foreign

direct investment in China and private wealth structuring

issues. She commented ‘The experience of working for a

top tier firm in the rapidly growing city of Shanghai has

been invaluable. The type of work in which I have been

involved, although different from my usual practice, has

been interesting and challenging. It has been useful to gain

an understanding of the legal framework, in particular

issues affecting foreign vehicles investing into China and

outbound investment together with the appropriate method

of structuring such investment. I have enjoyed meeting

with contacts both internally and externally (including

Claire O’Boyle, Carey Olsen, Zhaoan Li, Jersey Finance

and Lauren Fletcher, Ogier

‘The experience of working for a top tier firm in the rapidly growing city of Shanghai has been invaluable’ Lauren Fletcher - Ogier

Jersey

Jersey Finance Limited4th Floor, Sir Walter Raleigh House48-50 EsplanadeSt HelierJersey JE2 3QBChannel IslandsT: +44 (0)1534 836000F: +44 (0)1534 836001E: [email protected]

Mumbai

Jersey Finance Limitedc/o B 205 Dynasty Business ParkAndheri Kurla RoadAndheri EastMumbai - 400093 IndiaT: +91 (0)22 6742 3211 F: +91 (0)22 6742 3215E: [email protected]

New Delhi

Jersey Finance Limitedc/o 4th Floor, Statesman HouseBarakhamba Road, Connaught Place New Delhi - 110001 IndiaT: +91 (0)3044 6777 F: +91 (0)3044 6506E: [email protected]

London

Jersey Finance LimitedSuite 604, Tower 4225 Old Broad StreetLondon EC2N 1HNUnited KingdomT: +44 (0)20 7877 2317F: +44 (0)20 7877 2316E: [email protected]

Hong Kong

Jersey Finance LtdRoom 5, 20th FloorCentral Tower28 Queen’s Road CentralCentralHong Kong T: +852 2159 9652F: +852 2159 9688E: [email protected]

Abu Dhabi

Jersey Finance LimitedOffice 107, Bainunah St 34, Al Bateen C6TowerPO Box 113100 Abu Dhabi UAET: +971 2 406 9722F: +971 2 406 9810E: [email protected]

Documents

Jersey Links with China