Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Hong Kong instability might boost BVI

The British Virgin Islands, a jurisdiction that mediates trillions of dollars in Chinese assets each year, some financial services experts say it’s too soon to predict the impact of the unrest on this territory, but the outlook might not be as negative as it appears.

Hong Kong leader Carrie Lam on Tuesday refused to budge on the demands of the pro-democracy protesters marching through the streets of the Chinese territory, even as the demonstrations became increasingly violent.

Meanwhile, in the British Virgin Islands, a jurisdiction that mediates trillions of dollars in Chinese assets each year, some financial services experts say it’s too soon to predict the impact of the unrest on this territory, but the outlook might not be as negative as it appears.

“In financial services, when anything happens to your core market, of course you’re going to be nervous, but my rule of thumb: Disruption is not necessarily a bad thing for a BVI law firm,” said Colin Riegels, a former managing partner at Harneys who now consults for the VI firm.

Hong Kong leader Carrie Lam on Tuesday refused to budge on the demands of the pro-democracy protesters marching through the streets of the Chinese territory, even as the demonstrations became increasingly violent.

Meanwhile, in the Virgin Islands, a jurisdiction that mediates trillions of dollars in Chinese assets each year, some financial services experts say it’s too soon to predict the impact of the unrest on this territory, but the outlook might not be as negative as it appears.

“In financial services, when anything happens to your core mar- ket, of course you’re going to be nervous, but my rule of thumb: Dis- ruption is not necessarily a bad thing for a BVI law firm,” said Colin Riegels, a former managing partner at Harneys who now consults for the VI firm.

Over the past 30 years, as China has opened up to become the second largest economy in the world, it has developed a symbiotic relationship with the VI, in which Chinese clients use off-shore vehicles for business purposes, wealth structuring, asset planning and other services, taking advantage of the VI’s stable legal structure and low tax rate.

BVI-China relations

According to the South China Morning Post, China, including Hong Kong and Macau, is responsible for more than 40 percent of the $1.5 trillion mediated through the more than 400,000 BVI-registered companies.

That reputation likely will continue to work to the VI’s benefit, Mr. Riegels said.

“Essentially a lot of what we market is asset security, particularly for people who are concerned about their governments and assets, and so in a strange way it absolutely wouldn’t shock me that people being uncertain about Hong Kong’s future could actually lead to an uptick [in the VI’s business],” he said. “But how much do you want to roll the dice?”

Robert Briant, partner and head of the corporate department at Conyers, spoke similarly, calling the protests “a double-edged sword.”

“But if there’s some uncertainty as to the rule of law [in Hong Kong], that’s good for the BVI,” he said.

The protesters are demanding the withdrawal of a bill — since removed from the Legislative Council’s agenda, but not yet formally withdrawn — that would allow extradition of some people facing criminal charges in mainland China.

Opponents claim the bill would create a slippery slope under which the Chinese government could target its political enemies.

But the proposed law is just the latest in a long-simmering tension over the former British colony’s semiautonomous status, which gives the territory a separate legal system that has allowed it to become one of the world’s leading offshore financial jurisdictions.

Meanwhile, the relationship between China and the BVI continues to be strong.

This year’s Vistra 2020 report found that most of the VI’s 11.2 percent growth in new incorporation volumes in the first nine months of 2018 over the previous year came from China, resulting in the VI’s ranking as the second-most important off-shore territory worldwide.

Meeting with protestors

Ms. Lam disputed charges that her government is ignoring the protesters, who are also demanding democratic elections and an inquiry into police brutality used against protesters.

She held a meeting with protestors on Monday, though opponents dismissed it as a stalling tactic.

For now, Messrs. Briant and Riegels agreed that it’s too soon to tell what consequences the upheaval may have. In the short term, they said, the VI shouldn’t worry.

“So far the party line is that the protests are not having any impact on business in Hong Kong,” Mr. Briant said. “Our Hong Kong offices are busy.”

Nevertheless, the loss of Hong Kong as a separate jurisdiction - for instance, if China were to gain complete control and prohibit the use of offshore vehicles - could be catastrophic for the VI and the global economy as a whole, Mr. Briant said.

“If Hong Kong ceases to be an effective global financial centre, the disruption in global business would be extraordinary, but that’s an Armageddon scenario,” he said. “You don’t lose financial centres overnight. In the medium term, [the protests] are positive for us.”

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
×