Jersey, China sign memo on fi­nance

China Daily (Canada) - - BUSINESS - ByWUYIYAOin Shang­hai wuyiyao@chi­nadaily.com.cn

The China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion (CSRC) signed a Me­moran­dum of Un­der­stand­ing with the Jersey Fi­nan­cial Ser­vices Com­mis­sion (JFSC) in mid-April, pro­vid­ing an­other ve­hi­cle for China’s en­ter­prises to en­ter over­seas mar­kets.

The me­moran­dum will pro­vide the ba­sis for a frame­work of co­op­er­a­tion and ex­change of in­for­ma­tion be­tween the two sets of au­thor­i­ties in re­la­tion to se­cu­ri­ties and fu­tures busi­ness.

An­a­lysts said it also will boost in­bound and out­bound in­vest­ments in sev­eral ways. TheMoU will be the first step in al­low­ing Jersey-domi­ciled funds to par­tic­i­pate in the QFII / QDII (Qual­i­fied For­eign In­sti­tu­tional In­vestor/ Qual­i­fied Do­mes­tic In­sti­tu­tional In­vestor) pro­gram.

Cur­rently, for­eign and Chi­nese in­vestors have only been al­lowed to in­vest cross-bor­der by buy­ing into funds reg­u­lated through ei­ther the QFII pro­gram or the QDII pro­gram, both of which are re­stricted by quo­tas. As such, it will add to Jersey’s ap­peal as a ju­ris­dic­tion that can serve as a gate­way for in­vest­ing into and out of China.

The largest of the Chan­nel Is­lands be­tween Great Bri­tain and France, Jersey is a self-gov­ern­ing Bri­tish Crown de­pen­dency. Its pri­mary in­dus­try is mod­ern fi­nan­cial ser­vices, with over 25 per­cent of the pop­u­la­tion em­ployed in the sec­tor and more than five decades of tra­di­tion in the sec­tor.

In De­cem­ber 2013, about one-third of Chi­nese com­pa­nies listed on the Al­ter­na­tive In­vest­ment Mar­ket (AIM) of the Lon­don Stock Ex­change were in­cor­po­rated in Jersey.

In ad­di­tion, Jersey has the largest num­ber of AIM and Fi­nan­cial Times Stock Ex­change 100 list­ings reg­is­tered out­side the UK, ac­cord­ing to data from Jersey.

The MoU will open the door to a mu­tu­ally ben­e­fi­cial ex­changes of reg­u­la­tory in­for­ma­tion be­tween the au­thor­i­ties.

“This is good news for en­sur­ing com­pli­ance within the re­spec­tive se­cu­ri­ties and fu­tures laws or reg­u­la­tory re­quire­ments,” said Jersey ChiefMin­is­ter Ian Gorst.

The me­moran­dum will ben­e­fit Chi­nese in­vestors look­ing to in­ter­na­tion­al­ize their in­vest­ments and will fur­ther con­sol­i­date Jersey’s com­mit­ment to the China mar­ket, said Gorst.

With cross-bor­der fi­nan­cial ser­vices be­tweenJersey and China ex­pected to in­crease in com­ing years, it will be vi­tal that the JFSC and CSRC are in a po­si­tion to closely co­op­er­ate, said John Har­ris, di­rec­tor gen­eral of JFSC.

The me­moran­dum should as­sist in this re­gard as it es­tab­lishes a for­mal frame­work for the ex­change of reg­u­la­tory in­for­ma­tion and mu­tual as­sis­tance for the pur­pose of en­sur­ing com­pli­ance by fi­nan­cial ser­vice businesses with each ju­ris­dic­tion’s reg­u­la­tory re­quire­ments.

“Jersey is now ex­tremely well-placed to re­al­ize the grow­ing num­ber of in­ward and out­ward in­vest­ment op­por­tu­ni­ties be­ing made avail­able by the con­tin­ued lib­er­al­iza­tion of the Chi­nese econ­omy,” said Richard Cor­ri­gan, Jersey Fi­nance’s Deputy Chief Ex­ec­u­tive.

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