Sino-U.K. 'Strategic Plan' for Financial Services
November 10 2016 - 12:40PM
Dow Jones News
LONDON—The U.K. and China on Thursday agreed to deepen ties
between their financial services industries, in part of Britain's
ongoing push to establish London as a global hub for Chinese
finance that has gained added significance since the country voted
to leave the European Union.
The U.K. Treasury said in a statement that London and Beijing
agreed to a "strategic plan" for financial services following a
meeting in London between Treasury chief Philip Hammond and Chinese
Vice Premier Ma Kai, who also met with Prime Minister Theresa May
and Bank of England Gov. Mark Carney.
The plan includes measures to permit British financial firms
greater access to Chinese markets, and vice versa. The U.K. has for
years sought to deepen its economic ties to the world's
second-largest economy, a courtship that has drawn criticism from
those uneasy about giving Chinese firms a foothold in potentially
sensitive parts of industry.
The U.K.'s approach contrasts with the more-skeptical U.S.,
which is likely to grow more so under President-elect Donald Trump.
Mr. Trump frequently castigated China and Chinese trade practices
on the campaign trail.
Some European nations are also cool on Chinese investment.
Germany's economics ministry in October halted a €670 million
($728.89 million) Chinese acquisition of chip equipment-maker
Aixtron SE, the latest sign of alarm about a wave of Chinese
takeovers.
For the U.K., though, bolstering trade and investment with
faster-growing economies is a key plank of its post-Brexit
strategy. Mrs. May visited India this week to talk up U.K.-India
trade.
As part of the financial-services accord announced Thursday,
Beijing has agreed to let some British banks act as underwriters
for so-called panda bonds, yuan-denominated debt issued to Chinese
investors by non-Chinese firms, and to gradually relax rules that
prevent foreign owners holding more than 50% of certain types of
financial firms operating in China, including life insurance and
mutual-fund companies.
For its part, the U.K. has granted licenses permitting a handful
of Chinese financial firms to open offices in London, including
China Life Insurance Co. Ltd. and Shanghai Clearing House, the
Treasury said. There were also deals covering financial technology
and green finance.
Jenny Cross contributed to this article.
Write to Jason Douglas at jason.douglas@wsj.com
(END) Dow Jones Newswires
November 10, 2016 12:25 ET (17:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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