NEWS

Leo Zhang The Cayman Islands and China have signed a landmark tax information exchange agreement as part of efforts to boost ties between the two countries and reflecting China stepped-up efforts to combat capital flight. It was the 26th agreement for exchange of information with regard to tax purposes for the Cayman Islands, which is on the way to reach more similar deals with the globe most powerful nations. McKeeva Bush, the Cayman Islands' Premier, co-signed the TIEA with Song Lan, Deputy Commissioner and Vice Minister of China State Administration of Taxation at a ceremony on September 26. The agreement will...

NEWS 2020

By John P. Egan Hong Kong, the world third largest gold trading centre, has become the first region outside of mainland China to offer RMB denominated gold spot contracts, reinforcing its position as the premier offshore hub for the yuan. In times of economic uncertainty gold is habitually used as a means of light to safety the recent explosion in demand for the precious metal has been largely in response to global economic turmoil resulting from the financial crisis of 2008. Not only does it offer speculative opportunities, it also provides a hedge against inflation, deflation and currency devaluation. China...

NEWS 2020

By Adam Skuse The Chinese central bank has issued regulations allowing foreign direct investment (FDI) into the country denominated in yuan, in one of a series of recent developments in the internationalization of the currency. The People's Bank of China (PBOC) announced on October 14 that foreign institutional and individual investors will be able to apply for permits to make direct investments using the yuan, on the condition that their investments are in line with China's current laws and regulations. As China's favored offshore center for the yuan and a springboard for the internationalization of the currency, Hong Kong will...

NEWS 2020

By John Paul Egan The Unites States senate unanimously passed a bill on October 11th that would start imposing tariffs on Chinese imports. According to the senate, this comes in a response to the artificially undervalued yuan, maintained by the Chinese government. The senate believes this currency valuation imbalance is instigating the loss of many jobs in America, while giving China a competitive advantage over the US. With the US presidential elections fast approaching and unemployment in the region of 9 percent, this is seen by some analysts as merely a populist decision by the senate for the electorate and...

NEWS 2020

By John P. Egan Last month HSBC Global Asset Management announced it will introduce the HSBC GIF (Global Investment Fund) Renminbi Fixed Income fund to give financial intermediaries an extra investment vehicle for investors seeking to capitalize on in China economic growth. The fund is enlisted for retail across Europe and is part of HSBC Global Asset Management Luxembourg-based Global Investment Funds SICAV. The fund will concentrate on offshore RMB denominated vehicles such as renminbi deposits and bonds. It is to be managed by the HSBC Hong Kong based division, lead by Cecilia Chan. It is being offered in both...

NEWS 2020

By John P. Egan Chairman of the Luxembourg Fund Industry, Marc Saluzzi, spoke at the uxembourg, A Global Financial Services Centre seminar in Shanghai on October 21 saying that Luxembourg was ery interested in becoming an offshore yuan destination, according to an article in China Daily. Luxembourg for Finance, a public-private partnership between the Luxembourg government and the Luxembourg Financial Industry Federation responsible for the promotion of the financial centre, organized a financial mission to Singapore, Kuala Lumpur and Shanghai between 17 and 21 October. The mission was led by Mr Luc Frieden, Minister of Finance and Chairman of Luxembourg...

NEWS 2020

By John P. Egan The World Bank released a report last month concluding that the laundering of earnings from corruption is as a result of companies rather than trust fund instruments. The report also gave offshore jurisdictions a clean bill of health, saying their regulations were clearer than their onshore counterparts. Compiled by the WB's Stolen Asset Recovery team under Emile van der Does de Willebois and titled he Puppet Masters, it is extensive and draws from around 150 corruption cases from 40 jurisdictions. A fundamental discussion throughout the report relates to the notion of determining beneficial ownership; the identification...

NEWS 2020

By Anas Almasri The Securities and Exchange Commission (SEC)has recently approved stricter regulations on companies going public in the US through hell companies and reverse mergers. Such companies now need to meet higher standards before they are allowed to access to American capital. The new rules were announced on Wednesday November 9 and will apply to all three major US listing markets: Nasdaq, NYSE, and NYSE Amex. Private businesses based outside of the US who want to avoid the costs or scrutiny associated with a new public offering process, can choose to merge with an already listed shell company a...

NEWS 2020