Guernsey has received the green light for its companies to list on the Hong Kong Stock Exchange.
The Exchange's Listing Committee has formally approved Guernsey as an acceptable overseas jurisdiction for the purpose of companies incorporated in the Island seeking to list on the Exchange.
The decision was made at a meeting on Thursday 24th March and the news was officially confirmed through a statement on the Exchange's website on Wednesday 18 May.
Peter Niven, Chief Executive of Chief Finance – the promotional agency for the Island's finance industry internationally, said: "This is a very positive development for Guernsey's finance industry. Our service providers are seeing continued growth in terms of the numbers of clients from the Far East and there has been particular interest in being able to list Guernsey incorporated companies on the Hong Kong Stock Exchange.
"Receiving this approval is very much welcomed because it means that now we will be able to meet this demand and indeed, there are opportunities already in the pipeline. It was particularly important that we received this approval because some of our competitor jurisdictions have this agreement in place already. Now our service providers can offer the same benefits through the use of Guernsey companies."
Guernsey's representative office in the region was opened in Shanghai at the end of 2007 and last year the Island's Chief Minister, Lyndon Trott, signed a Memorandum of Understanding (MoU) with the Shanghai Financial Services Office and a Tax Information Exchange Agreement (TIEA) with the Chinese central government tax authorities.
Mr Niven added: "Hong Kong is well-recognised as an important gateway for inward and outward flows of capital to China and other financial centres in Asia and so this approval provides us with another platform for doing business in the region. Later this year the Chief Minister will be leading a delegation to Hong Kong not only to enhance relationships with government and regulatory officials but also to put forward the case to the local industry for existing and potential clients to use Guernsey companies to list on the Exchange."
Caroline Chan, Guernsey-based Partner of Ogier which also has an office in Hong Kong, said: "I'm delighted to have been able to assist the Commerce & Employment Department on this project. By obtaining approval from the Hong Kong Stock Exchange to list Guernsey companies, our finance industry will be able to continue to build on the work being undertaken in the Asia region to raise Guernsey's profile and develop new sources of business and opportunities for the Island."
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.