THE China Banking Regulatory Commission has signed a statement of cooperation with the Isle of Man Financial Supervision Commission which will facilitate Chinese banks to establish branches on the island adjacent to the United Kingdom.

John Shimmin, the island's economic development minister, visited China last month, and found "tremendous business opportunities to build up new commercial relations with China," the Isle of Man government said in a press release.

"During our visit, we had a series of fruitful meetings with government officials and the local business community to understand their vision and plans for outward investment," Shimmin said. "Many of them showed enormous interest in the variety of opportunities that the Isle of Man can offer."

The Isle of Man is an international offshore financial center which has free trade access for goods sold into the UK and the European Union.

Due to zero corporate tax and relatively low value-added tax in the island, it can offer Chinese companies, especially exporters, a greater margin of profit for their businesses in Europe.

Also, for Chinese companies that have listing plans involving the UK or EU, the Isle of Man provides value-added services because it is already a favored location for obtaining UK listings.

The Isle of Man also signed an agreement of economic cooperation with the Shanghai Small to Medium Enterprise Center.