Cayman woos China investment

Government officials and people from the private sector are in China shopping the Cayman Islands as a place to invest. 

While there, the possibility of opening a Cayman office branch in China is being considered and Premier McKeeva Bush and others were also slated to meet with China Harbour Engineering Company Ltd. to view its capabilities firsthand. 

“China’s aggressive growth rate has been nothing short of impressive,” Mr. Bush said. “Its foreign exchange reserves grew by over $2 trillion from 2006 to 2010, hitting the $3.2 trillion mark by the third quarter of 2011. This means its capital buildup continues to surpass expectations. We made this trip because the country represents such a compelling case of increased business potential it simply cannot be ignored.”  

The delegation attended a private event where it presented the Cayman Islands’ business case to top financial intermediaries and high net worth individuals in mainland China as part of the China Offshore Summit conference in Shanghai on 26-27 October. The summit attracted more than 500 delegates and was organised to educate investment advisers, venture capitalists, private equity firms and other financial institutions on the ways they can benefit from the unique asset management and corporate product offerings available in leading offshore financial centres. 

Other jurisdictions in attendance included Isle of Man, the Bahamas, Belize and the Cook Islands. 

The Cayman Islands’ function was the most subscribed segment of the private event series. Industry partners from Ogier, Maples and Calder, Walkers Global, Ernst & Young, PricewaterouseCoopers, and dms Management joined government officials to speak about doing business in the jurisdiction.  

They offered strong validation for the country’s leadership position in the financial services sector and explained why Cayman structures are sought after, a news release by the Cayman Islands government said. Updates with regards to the General Registry’s ability to now register companies in a foreign script were favourably received and Cayman Islands government representatives also fielded inquiries regarding requirements for establishing a physical presence in Cayman.  

It was noted this type of investment decision was becomingly increasingly attractive as Chinese tax authorities are moving toward a regime that promotes more substance over form. 

The statement said Premier Bush was pleased with the overwhelmingly positive response to the Cayman Islands’ presence.  

There has been mounting evidence to suggest companies are bypassing Hong Kong and making a direct move into China and with Shanghai being the commercial capital, it was important to assess the possibilities of a Cayman Islands government branch while there. There are already Cayman branches in Hong Kong, Dubaiand Brussels.  

The branches help facilitate potential investment in the Cayman Islands.  

The final leg of the trip will involve meetings with private sector firms in Hong Kong to provide updates on current and pending changes to financial services-related laws and to get feedback on what the jurisdiction can do to further support the industry and facilitate growth.  

There is a re-surging acknowledgement in business circles that evoking the personal touch when conducting business is vital to success despite the numerous advances in technology that have enhanced global communications. In market presence helps to make the jurisdiction more “tangible” to investors and face-to-face contact builds trust and familiarity; both integral components of mutually beneficial working relationships.  

It was noted by organisers and attendees alike that the Premier’s presence at these overseas events lends substantial emphasis to the jurisdiction’s inward investment efforts.