Jersey And The BVI Both Ready For HKEx
Monday, January 18, 2010

Applications have been made for the first Jersey companies to be listed on the Hong Kong Stock Exchange (HKSE), ahead of a visit of Jersey finance professionals to Greater China this week, Jersey Finance has reported. The formal inclusion of Jersey companies on the Hong Kong Exchange’s approved list, which was announced last October, was the result of more than a year’s negotiation, research and document preparation involving government officials in Jersey, representatives from Jersey Finance, and the finance industry. Following the approval, Jersey Finance opened an office in Hong Kong to support the promotion of Jersey as an international finance centre in the Asia Pacific region.

Last year in December the Hong Kong Stock Exchange also approved the British Virgin Islands as a source of companies for listing. The BVI Financial Services Commission welcomed the news with the Managing Director and Chief Executive Officer, Mr. Robert Mathavious commenting: "This is long something that the BVI authorities and industry practitioners have hoped would be possible. It emphasises the quality of BVI companies and extends their values to users." Ms. Sherri Ortiz, Executive Director of the BVI International Finance Centre, (BVI IFC, commented: "The BVI IFC continues to strive towards recognition as an innovative, efficient and respected financial centre. We are therefore delighted that the Hong Kong Stock Exchange has accepted the BVI´s application which is evidence of Maples and Calder´s hard work and our commitment to innovation within the financial services industry which allows BVI companies to expand into other markets."

A delegation including representatives of Jersey Finance and Jersey’s finance industry are due to give presentations in Hong Kong and Shanghai this week, focusing on what makes Jersey companies particularly suitable vehicles for listing purposes, recent revisions to Jersey Company Law and what they claim are the benefits of Jersey for listing purposes over the Caribbean jurisdictions. The finer details of the listing process for Jersey companies will also be examined. In addition, two Jersey legal professionals will reflect on their experiences of handling recent applications to the Hong Kong Stock Exchange and other major global exchanges.

Rob Kirkby, Technical Director of Jersey’s Greater China Business Development team, said: “The approval at the end of last year for the listing of Jersey companies on the Hong Kong Stock Exchange was a significant development, which we are now looking to build on. A number of applications for Jersey companies to be listed on the Exchange are in the process of being made. This significant interest is fantastic news and a positive reflection of the excellent reputation Jersey has gained on the international stage.”

Jersey’s finance industry provides comprehensive corporate listings and debt issuance services in the region. To date more than 25% of the 60 Chinese companies listed on London's Alternative Investment Market (AIM) are incorporated in Jersey, and there are 86 businesses using Jersey companies for listing purposes on worldwide stock exchanges from London to New York, representing a combined market capitalisation of over GBP16bn.

33 stock exchanges are on the 'approved' list, but besides Jersey and the BVI, only Luxembourg and Ireland could be said to be to qualify as 'low-tax' or 'offshore', and both of them are bound by EU regulations.