China-UK-Europe Relationships & Co-operation After Brexit: Rewiring the Connections

Information

UK China Europe1

China Development Institute (CDI) and Z/Yen are hosting an online expert seminar to take place on 20 May 2021, with a focus on UK-China-Europe Relationships and Co-operation After Brexit.

The objectives of the event:

The future of cooperation in capital markets between China-UK-EU

The trends of regional financial development in Europe

Opportunities and issues that arise for the future.

Date: Thursday, 20 May 2021

Time: 16:00 China, 09:00 London

highlights

Financial services remain a key sector for China-UK cooperation.

China-UK cooperation in the financial sector has been historically on good terms and has been clearly complimentary. Experts suggest that future China-UK financial cooperation could successfully continue through three primary aspects. Firstly, in terms of technologies such as big data, AI and blockchain, bilateral research collaboration can yield technological advancements and discovery of new application scenarios. Second, China-UK financial organizations could strengthen international collaboration in areas such as inclusive, digital and green finance, whilst kickstarting joint laboratory and platform service businesses. Thirdly, improved regulatory cooperation. Regulatory bureaus between the two countries should collaborate with respect to fin-tech regulations and explore the building of a regulatory sandbox in order to create a safe, inclusive and open business environment.

China-UK capital market connectivity is likely to grow closer.

In recent years, China-UK capital market collaboration has seen significant breakthroughs. Experts have proposed that the offshore renminbi (CNH) securitization market could be initiated in London, with exploration into London-based securities that are denominated in CNH, which will help accelerate renminbi asset internationalization. Furthermore, the two parties could consider establishing offshore renminbi investment funds in London, whilst providing preferences to each party’s well-funded financial institutes for early collaboration and introduction of other institutions later on. Moreover, with the Shanghai-London stock connection will engender greater convenience for investors from the two nations to carry out investment activities in each other’s markets, thereby expanding China-UK bilateral investment and fund-raising channels.

China-UK cooperation in green development will help promote greater sustainable development of the global economy post-pandemic.

Against the backdrop of the global Covid-19 pandemic, more companies have increased investment in sustainable operational technologies, equipment and services, which has further stimulated the green innovation vitality. China and UK could further exploit their own advantages and characteristics in the future, improving the green finance systems whilst advancing the implementation of bilateral financial organizational cooperation and investment projects. Experts propose the cohesive development of the green finance sector in China and UK, which could be advanced via cooperation in areas such as alignment of green finance standards, research and development of innovative products, and the building of a foundation for the forming of international green finance standards. Moreover, based on the green finance cooperation, the two sides should actively collaborate in the development of clean, safe and affordable energy technologies to push forward the development of sustainable infrastructure, as well as the transition towards a low-carbon economy of both countries.