This Is Guernsey

By Richard Digard

Members of the Shanghai delegation joined Chief Minister Lyndon Trott in observing the two minutes’ silence. (Picture by Tom Warr Photography, 0669620)

CHINA’S largest city would like to use Guernsey as a role model for developing its own financial services sector, it emerged last night.

Shanghai’s vice-mayor said that if the municipality wanted to develop that area, ‘we have much to learn from Guernsey’.

Tu Guangshao’s comments, at a special dinner hosted by Chief Minister Lyndon Trott, were a particularly encouraging end to a whistle-stop tour of the island yesterday by a senior delegation from the city.

The event was something of a coup for Guernsey because the visitors took time to come here after visiting Switzerland and while on a fact-finding mission in the UK, where today they will go to the London Stock Exchange.

Speaking at the Fermain Valley Hotel to politicians, finance industry leaders, regulators and Deputy Bailiff Richard Collas, Mr Tu spoke warmly of the differences and similarities between the two communities, despite their differences in size.

He said that financial services accounted for just 10% of Shanghai’s gross domestic product and as the city became more open in the future so it would seek to extend that sector.

In doing so, there was much it could learn from the island. ‘Guernsey will be a very good partner for us,’ he said.

Emphasising friendship and cooperation, Mr Tu said there were benefits for the island as well.

‘Guernsey would also like to find more opportunities elsewhere in the world and in that sense Guernsey and Shanghai have a lot of complementary areas.’

Officials said afterwards that Shanghai, said to be the showpiece of one of the world’s fastest growing economies, was interested in how the island had managed the growth in financial services with limited resources and the consequences of that growth.

It is also aware of the island’s ageing population and a Health and Social Services Department delegation visited Shanghai earlier to explain Guernsey’s strategies for coping with the demographic timebomb.

Before a symbolic exchange of gifts, Deputy Trott told Mr Tu and his delegation that the entrepreneurial spirit that is so alive and palpable in Shanghai was very much alive here and was the hallmark of Guernsey’s success.

‘There is a great deal, I believe, that we can achieve through working togetherÊ… to forge a strong and lasting relationship which is good for both our communities.

n Shanghai regulators are expected to visit next year to work with local officials and other working contacts are also being discussed.

Article posted on 10th November, 2008 - 11.30am