Is this the year when, finally, captives take off in China? To me all the signs suggest so:
- 2nd Chinese owned captive set up in Hong Kong recently
- Changes in Chinese and Hong Kong legislation to facilitate creation of captives
- Growing interest by Chinese businesses
- Increased promotional activity by captive practitioners and governmental agencies
Benefits to the Region
Hong Kong stands to benefit from this interest. Although it is the world’s third-largest financial centre, until recently captives have not really figured in its vision of future business development.
I see this as about to change as the captive concept gains momentum and new captive owners look to replicate recent formations in Hong Kong. Expect to see many job adverts for captive experts as the region looks to build the necessary support infrastructure. For me, I’m expecting to log lots of frequent flyer miles.
Whilst Hong Kong may be the obvious choice for Chinese captive owners, expect competition from Singapore, the largest Asian captive centre.
And the dark horse in all of this? Watch out for the emergence of the Shanghai Free Trade Zone. I’m soon to travel there and will report back.