China, UK agree to upgrade economic, financial cooperation

 

Chinese Vice Premier Ma Kai (1st from right) and UK Chancellor of the Exchequer

George Osborne (2nd from right) meet with entrepreneurs on the sidelines of the fifth

China-UK Economic and Financial Dialogue in Beijing on Tuesday of October 14, 2013.

The fifth China-UK Economic and Financial Dialogue is held here on Tuesday. Ma Kai

and George Osborne co-chaired the dialogue.   Photo by Wang Ye

 

Participants attend the opening ceremony of the fifth China-UK Economic and Financial

Dialogue in Beijing on October 15, 2013. Chinese Vice Premier Ma Kai and UK Chancellor

of the Exchequer George Osborne co-chaired the dialogue.   Photo by Wang Ye

 

 

 

China, UK agree to upgrade

economic, financial cooperation

 

By Yang Yijun and Han Jie

 

China and the United Kingdom agreed to strengthen cooperation in macroeconomic, trade, investment and financial sectors at the fifth China-UK Economic and Financial Dialogue (EFD) held here on Tuesday of October 15.

Chinese Vice Premier Ma Kai and the UK’s Chancellor of the Exchequer George Osborne co-chaired the dialogue, according to a Foreign Ministry press release.

Ma called on the two sides to create new highlights of economic cooperation, deepen financial cooperation as well as improve coordination in major international economic and financial affairs so as to promote sustained and healthy development.

China welcomed the UK’s commitment to provide favorable conditions for Chinese investment in British infrastructure, according to Ma, who urged the two sides to further make good use of the EFD in order to develop China-UK relations.

The UK welcomed China’s actions to deepen reform and expand opening-up, Osborne said, adding that the UK is willing to strengthen international economic policy coordination with China under the G20.

The UK is ready to work with China to resist all forms of protectionism, according to Osborne.

Both sides will expand cooperation in civil nuclear energy, new generation IT technology, advanced materials, photovoltaic industry, high-tech services and other fields, the press release said.

China welcomed the UK’s reaffirmation to encourage the European Union to recognize China’s full market economy status, its agreement to promote and facilitate bilateral high-tech trade with China for civil end uses and civil end users, as well as its agreement to consider applications from Chinese Banks to establish branches in the UK.

The UK looks forward to China hosting a forthcoming G20 summit, it added.

Following the dialogue, Ma and Osborne witnessed a signing ceremony of a memorandum of understanding between the two sides on civil nuclear cooperation.  

 

 


 

London to develop further

as yuan trading hub

 

By Liu Jie

 

China and the United Kingdom on Tuesday of October 15 agreed to continue to build London into a major offshore market for yuan trading, underlining the strong financial ties between the two countries.

Both sides welcomed strong growth of London’s RMB markets, making the capital city the most active RMB center in the world outside China, according to a joint statement after the fifth China-UK Economic and Financial Dialogue held in Beijing.

“China recognized London’s major role in increasing the international use of the RMB, and both sides agreed to continued collaboration to support London’s offshore market,” the statement said.

To boost London’s market status, China will give investors based in the city the right to buy 80 billion yuan worth of stocks, bonds and money market instruments issued by financial institutions in the Chinese mainland.

China allows foreign institutional buyers to trade yuan-denominated financial products through a regime called RQFII, or Renminbi Qualified Foreign Institutional Investor.

As a means to encourage foreign investors to hold the yuan, the RQFII now has a global quota of 350 billion yuan.

The extension of RQFII will deepen China’s financial markets and strengthen RMB activity in the offshore market, the statement said.

“China agreed to further develop capital inflow and outflow channels for RMB, including for RMB trapped onshore, overseas direct investment and the development of Qualified Domestic Institutional Investor (QDII) quota to support liquidity in the offshore market,” it said.

In addition, both sides agreed to support further RMB bond issuance in the UK by Chinese as well as international firms, and the development of London as an offshore RMB debt issuance center.

A number of cities are vying for China’s permission to be allocated as a center for clearing yuan trading offshore, in expectation of providing lucrative financial services.

The dialogue was co-chaired by Chinese Vice Premier Ma Kai and the UK’s Chancellor of the Exchequer George Osborne.

 

 

 

 

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