THE China Banking Regulatory Commission and the Isle of Man Financial Supervision Commission have agreed to facilitate Chinese banks in setting up branches on the island, located adjacent to the UK.

The two bodies signed a statement of cooperation after the Isle of Man Minister for Economic Development John Shimmin concluded a visit to China last month. He found "tremendous business opportunities to build up new commercial relations with China," the island, a self-governing British Crown Dependency with a high degree of internal autonomy for its own legislation and tax matters, said in a release yesterday.

"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."

Also known as Mann, the Isle of Man, located in the Irish Sea between the UK and Ireland, 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, the island can offer Chinese firms, especially exporters, a greater margin of profit for their businesses in Europe. For Chinese companies which plan to list in the UK or EU, the island provides value-added services.