UK Chancellor Rachel Reeves will lead a delegation of leading City bankers to Beijing in January 2025 in seek of closer economic ties, based on a proposal drawn up by the Treasury; the Financial Post and FT reports.
The proposal centres on the expansion of relations between British and Chinese banks and financial institutions, notably via resuming the London-Shanghai Stock Connect for dual listings. It also proposes deeper co-operation across the bond markets, asset management, insurance, and financial regulatory sectors, and includes a minister-led climate forum to aid clean energy efforts. In turn, the UK will demand China commit to international human rights and labour laws to assuage concerns about China’s stance on the Russia-Ukraine war and crackdown on Hong Kong activists.
The timing of this delegation is viewed to pose substantial political risks for the Labour government, as President-elect Trump returns to the White House with a decoupling agenda, and the EU looks to increase pressure on China’s position regarding the Russia-Ukraine war. The announcement also comes after a lawyer who lobbied trade links for British Chinese nationals recently lost her legal challenge against the MI5 over spying accusations.
However, the proposal could boost chances for Shein, the world’s largest online fast fashion retailer, to float on the London Stock Exchange. This comes as the exchange suffers the biggest exodus since 2008, with the FCA expressing a more dovish stance on approving listings.
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