In the first of a new monthly series, guest columnist GuernseyFinance’s chief executive Peter Niven

discovers on a trip to Shanghai the potential benefits for the local industry ARRIVING in Shanghai I thought for a minute they knew GuernseyFinance had arrived.

The centre of the city was being cordoned off, elaborate decorations lined the streets and a huge firework display was to take place… in our honour?

The illusion was shattered when I was asked not to leave the hotel between nine and 11pm as a second full-dress rehearsal for another high-profile visit was about to take place.

Oh well, but what a show.

This was really the only time I could tell that I was in a communist country. Where else in the world could the centre of a major city of some 18 million people be closed for the evening for a second rehearsal with a full 30-minute firework display?

Even though the fireworks weren’t for GuernseyFinance, I did receive an extremely warm welcome everywhere I went.

Over two very hectic days, I met a wide range of people, including business introducers, the press, local practitioners, government officials and the Chamber of Commerce.

In addition to all these meetings, GuernseyFinance took a stand at an exhibition for high net-worth individuals – The Extravaganza Shanghai.

I was very encouraged by the number of people who had a high level of interest in Guernsey. Particularly pleasing was the news that the island already has some name awareness in Shanghai through the marketing of Generali products and the Dominion funds.

At the exhibition, the Guernsey drum was banged as a good place to do business and as a great place to live. People were interested in what the island could offer them and particularly how the jurisdiction fitted into the bigger international finance picture.

Now I’m back, it is time to analyse all the information that was gathered, but already I can say with confidence that there will be opportunities for the Guernsey finance industry.

China has a population of more than a billion and with growth rates of around 12% per annum, it is the world’s fastest-growing economy.

It is such a considerable market that even a small slice of this business would be of real significance to the industry.

At the moment the openings are somewhat constrained by the Chinese regulatory system, but it is anticipated that the markets will become more open to foreign business in two to three years’ time.

However, relationships need to be built up over time so that opportunities that emerge in the future can be grasped as they do so.

Therefore, we need to be willing to use resources to put the foundations in place now. If we want to maximise returns by being well positioned when the markets are liberalised, then now is the time for the action.