Premier André Ebanks is travelling to Hong Kong, Shanghai and Tokyo this week as part of a push to strengthen Cayman’s relationships with Asian financial services clients.
Cayman’s clientele in the sector now includes a growing base of Chinese fund managers using Cayman vehicles to access global capital markets.
Ebanks told the Compass that Shanghai was a particular focus of the trip.
“We’re starting to see more and more financial businesses coming from mainland China … we’re starting to see much more commercial opportunities emerge from Shanghai.”
The visit comes as Cayman’s financial services sector has deepened its ties with Chinese firms over the past decade.
The territory has become one of the world’s most important avenues for Chinese money flowing into global markets. In 2023 alone, Chinese firms channelled US$8.7 billion through Cayman-registered companies, more than any other jurisdiction outside Asia.
Chinese companies use Cayman-registered holding companies to raise money from international investors, a structure that allows them to list on stock exchanges in Hong Kong and New York without falling foul of Beijing’s restrictions on foreign ownership of Chinese businesses.
Japan is also a key market for Cayman’s financial services industry.
Ebanks said the trip would include speaking engagements at conferences organised by Maples and the Alternative Investment Management Association, whose branch asked him to speak in Tokyo. He described Tokyo as “a powerful investment funds client country”.
He emphasised the China trip was about clients in the financial sector rather than any government-to-government business or Chinese state financing.
Chinese companies have invested heavily in Caribbean infrastructure, particularly in Jamaica, but that is not on the table as an option for Cayman at this point.
“This would be primarily managers of Cayman funds, managers of funds that use Cayman Islands funds as a product, or Cayman vehicles for stock exchange listings and so forth,” he said.
Asked whether escalating US-China trade tensions created complications for Cayman, Ebanks said frank dialogue on those type of issues was part of the point of the trip.
“This is exactly one of the things that we’d like to be able to assess in person – how they see the world, how they see us, what’s on the global horizon that they need to contend with. How can we help.”
He said the visit was also a chance to meet long-standing clients face-to-face.
“For some of these businesses that have been utilising Cayman services for decades, it means a lot to them for us to actually say, thank you for your business. Do you have any questions or concerns? You can’t really do it by Zoom. You have to be there in person.”
Cayman Finance CEO Steve McIntosh said earlier this year that the jurisdiction had seen no decline in Chinese companies or investors using Cayman despite US-China tensions, describing its role as a “tax-neutral intermediary for investment flows” as resilient. US-China trade tensions had created uncertainties in global markets but appetite for Cayman structures remained strong, he said.
The premier will travel to Hong Kong from 7 to 9 May, before moving on to Shanghai and concluding the visit in Tokyo on 15 May. He will be accompanied by Gene DaCosta, the Cayman Islands Government’s overseas representative to Asia, and Cabinet Office International Affairs Analyst Sean Whewell.
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Huge waste of money. Not sure who thought this was a good idea. Show some tangible results. You don’t think private businesses have sales teams for this? This should be called a vacation for him.
There is more pressing matters at home like mount trashmore. Seven mile beach, tourism, and crappy laws like the scooter laws and getting rid of expats who help do the legwork in finance for their bosses.
Waste of money trip per the usual.
What exactly are the Premier’s qualifications in these areas af overseas finance, there are many problems in Cayman he should be spending his time on rather than spending taxpayers money touring Asia.