China, UK vow to bolster economic cooperation, speed up stock connect plan

AFP PHOTO | POOL | FRED DUFOUR

Britain’s Chancellor of the Exchequer Philip Hammond and Chinese Vice Premier Ma Kai (C) pose with delegates for a group photo during the UK-China Economic Financial Dialogue at the Diaoyutai State Guesthouse in Beijing on December 16, 2017.

China and Britain have vowed to continue and strengthen cooperation on a wide range of economic, financial and trade issues, including speeding the introduction of a London-Shanghai stock connect program.

In a joint statement on Saturday, coinciding with an official visit to China by British finance minister Philip Hammond, the countries also said they opposed trade protectionism and reaffirmed their support for the World Trade Organisation as a key pillar of the global trade system.

The statement comes as China, in an unusual step, accused the United States and the European Union of breaking promises that they made when China joined the WTO.

Speaking at a press conference in Beijing together with Chinese Vice Premier Ma Kai, Hammond said the two countries were also discussing a long-awaited London-Shanghai stock connect programme, as well as a possible scheme to connect their bond markets.

“We have agreed to accelerate the final preparations for the London-Shanghai stock connect initiative and we’ve agreed to commence feasibility studies for a UK-China bond connect and for mutual recognition of funds between the two jurisdictions,” he said.

Hammond, who also visited a separate forum on Saturday where the London and Shenzhen stock exchanges signed a pact on supporting innovative companies, said he hopes to see more Chinese small firms “make the most of our country’s startup expertise, networks and capital raising capabilities.”

Fang Xinghai, vice chairman of China Securities Regulatory Commission, told the forum that China is looking to increase cooperation with Britain.

“China’s savings are ample and we should create conditions to turn more savings into capital of innovative firms, rather than letting most of the savings stay in the property market,” said Fang. “If we can achieve this, Chinas economy will move up to a new level.”