With ever more fierce competition and external regulatory pressures, offshore jurisdictions have their work cut out just to stay above water. Richard Li looks at how they are faring with vital Chinese business
More offshore jurisdictions are attracting Chinese interest, and the purpose for using these jurisdictions varies. It can be tax-driven, but now Chinese investors seem to care more about the flexibility, convenience and favourable legal framework offered by such places. Traditional jurisdictions including Cayman Islands and British Virgin Islands (BVI) are still attracting large numbers of Chinese investors, due to their maturity and familiarity.
But other jurisdictions are catching up. Some places have made use of geographical advantage to become springboards for entering larger markets. Mauritius and Dubai’s offshore banking centre, for example, are being used increasingly by Chinese companies for investment into Africa.
As for investing in the UK and Europe, “we will often see Guernsey and Jersey used as part of the investment structure”, says Paul Christopher, the managing partner at Mourant Ozannes in Hong Kong.