By Anas Almasri
In its latest effort to increase its China exposure, Guernsey has entered into new discussions with policymakers at the Shenzhen Stock Exchange (SZSE) over the prospect of Guernsey based companies listing on the Chinese exchange.
The Guernsey delegation visited China in November as part of its Asia bound mission, and on its itinerary was a stop in Hong Kong to promote its newly obtained approval for listing on the Hong Kong Stock Exchange (HKEX).
Companies based on the Channel Island were granted approval for listing on the HK exchange in May 2011.
The Shenzhen visit also followed a meeting with officials from the Singapore Stock Exchange (SGX), to evaluate the possibility of Guernsey establishments gaining listing rights on that exchange as well.
Carla McNulty Bauer, Minister of the Commerce and Employment Department in Guernsey, headed the delegation visiting China along with Peter Niven, Chief Executive of Guernsey Finance and his deputy Fiona Le Poidevin. Also present was Alan Bougourd, Registrar of Companies at the Island Registry.
Assistant President Zhou Jian Nan was among the Chinese officials who received the delegation at the Shenzhen Stock Exchange.
Commenting on the news in an emailed statement, Chief Executive of Guernsey Finance, the Island financial promotional arm, Peter Niven, emphasized Guernsey dedication towards the region and especially China, stating that the ability to list on the SZSE would strengthen the Island position and broaden the benefitsof using Guernsey-based companies for Chinese clients.
uernsey companies can already be listed on the local CISX, the London Stock Exchange, Euronext Amsterdam and the HKEX, among others and so being able to list on the SZSE will add yet another string to our bow. This means that clients from the Far East can have yet another benefit of using Guernsey companies either as a personal investment vehicle or as a fund vehicle for raising capital from investors, especially given the potential for dual listings in Shenzhen and one of the London markets. In addition, the development would mean that Guernsey companies could provide western firms with a route to gain exposure to Chinese investors, investing in projects locally in China or more internationally. /p>
While he admitted that current discussions with the Chinese exchange were still at an early stage, he maintained that Guernsey wanted to be in a good position with relation to the SZSE ongoing pening up to foreign investors Additionally, he highlighted Guernsey strong relationship with the Shanghai Stock Exchange as another example of how the island is readying itself to take full advantage of potential growth when possibilities for listing onother Chinese exchanges arise.
Other forms of cooperation between Guernsey and China include a Tax Information Exchange Agreement, and a Memorandum of Understanding with the Shanghai Financial Services Office.
On the latest efforts of Guernsey financial regulator, Peter Niven stated that n November 2011, the Island financial services regulator, the Guernsey Financial Services Commission, signed a statement of cooperation with the China Banking Regulatory Commission and we are now looking to reach a similar agreement with other regulatory bodies in China, such as the China Securities Regulatory Commission. /p>
