New | Guernsey to set up Hong Kong office in effort to tap fund and insurance business

Guernsey, the offshore financial centre for global fund management and insurance business, set up an office in Hong Kong last week, reflecting optimism on regional business opportunities even as an economic slowdown is poised to weigh negativity on activity in Hong Kong and mainland China.

Kevin Stewart, Minister of Commerce and Employment of Guernsey, said in Hong Kong that the regional economic slowdown and stock market uncertainty would not affect his government’s ambition to build relationships in Asia.

“There is never a right timing to expand our services. China still has 6.9 per cent GDP growth which I do not think is slow when compared with Europe and UK where growth is only 1 to 2 per cent,” he said.

Guernsey has a legal status a Crown dependency, which means it is independent from Britain but its defence and most foreign relations are handled by the British Government. Guernsey is made up of a main island plus three smaller islands, in addition to rocky outcrops, in the English Channel off the Southwestern shores of Britain.

The island supports financial products and services for global banks, investment funds, wealth management and insurance companies. These financial services account for 34 per cent of its GDP.

The island has 800 domiciled funds worth at £222.2 billion (HK$2.435 trillion), which are marketed to global investors. It also ranks as the fourth largest capital insurance domicile worldwide.

Companies which domicile on the island are eligible to apply for a stock market listing on exchanges in London, Hong Kong, Australia, and Euronext.