NEWS

By Baron Laudermilk Asia leads the way for growth and drives growth for other countries said Steven Crosby of PwC New York during a recent presentation in the Cayman Islands. He added that Asia is where wealth is growing the fastest, but impending regulation on the financial services industry, and in particular those in the wealth management business, could cost the industry 20-25 percent of its revenue. Regulation will have a negative impact on wealth management operations in China said Crosby. e think it is a 20 to 25 percent implied tax on everything we do, so a big impact...

NEWS 2020

By Baron Laudermilk XL Group, a financial services company headquartered in Ireland, which is worth about $46.3 billion, has launched an innovative suite of products that are designed to meet the specific insurance needs of the financial industry.This is not an advertisement, what XL Group is doing is not only trying to break into an untapped market, but also create products that deal with multitude of risk that different financial institutions are currently facing. These products protect a range of risks that any owner, CEO, or President will face if they run a financial institution. One of their main products...

NEWS 2020

By Leo Zhang On June 3, the agreement for the avoidance of double taxation (DTA) between Hong Kong and Portugal, signed on March 2, 2011, came into force after obtaining approval from authorities on both sides. The DTA, which specifies the taxation rights of Hong Kong and Portugal, will also offer preferential tax rates on a raft of passive incomes. Analysts said that the deal could prompt investors, especially those in the Chinese mainland, to use Hong Kong as a gateway to explore Portugal as cross-border economic activities and trade links between the two territories strengthen. This brought the number...

NEWS 2020

By Baron Laudermilk The UK government has decided to abandon the old way of managing its financial sector, including abolishing the Financial Services Authority, and establishing three new regulatory bodies: the Financial Conduct Authority (FCA), the Financial Policy Committee, and the Prudential Regulation Authority (PRA). Institutions that have significant financial risk, such as banks and insurers, will be dual-regulated by the PRA and the FCA. This is known as the win peaks model. The PRA will promote the safety and soundness of PRA authorized firms and ensure they carry their business properly and do not damage the financial system. The...

NEWS 2020

By Leo ZhangEuropean companies and institutional investors with an interest in China said they welcome the launch of renminbi-denominated products and services in London, according to a report unveiled on June 25 by the City of London Corp.The report, Corporate and Investor Perspectives on London Renminbi Business, was the second report by the City of London on the RMB initiative after the city set a goal of becoming a centre for yuan business. The first report, London: A Centre for Renminbi Business, was published in April.The new report examined the experiences of European firms using RMB for payments and investments....

NEWS 2020

By Baron LaudermilkOn June 11, China State Administration of Foreign Exchange (SAFE) released new rules on private outbound investments in order to solve the difficulties and lack of liquidity faced by private companies in terms of overseas financing. The document, entitled the Circular of State Administration of Foreign Exchange on Foreign Exchange Administration in Relation to Encouraging and Guiding the Healthy Development of Private Investment, is also intended to simplify the foreign exchange control policies for outbound investment activities by private companies. The circular main content includes simplifying the management of outbound direct investment capital remittance. The main difference between...

NEWS 2020

By Anas Almasri The latest addition to China network of Double Taxation Agreements (DTA) was recently concluded with Denmark, while Hong Kong signed a similar agreement with Mexico increasing its own tally. Both documents were inked in the second half of June, the former in Copenhagen on June 16th and the latter in Los Cabos on June 18th. Before heading to the two day G20 summit in Mexico, president Hu Jintao visited Denmark in a first such trip by a Chinese head of state since 1950, when the two sides established diplomatic relations. During his visit, he met with Danish...

NEWS 2020

By Iain Manley When Chinese Premier Hu Jintao visited Hong Kong at the end of last month, members of his party outlined an important step for the internationalisation of the renminbi: the establishment of a special economic zone adjacent to Shenzhen, named Qianhai Bay. Set on 15 square kilometres of reclaimed land, Qianhai Bay aims to become a service industry hub. Its special policies are targeted at businesses in six categories, including finance, taxation and telecommunication, but the most important of these is a measure that will enable Hong Kong banks to lend renminbi directly to mainland companies, significantly reducing...

NEWS 2020