Sino-U.K. 'Strategic Plan' for Financial Services

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 [e-mail]

(END) Dow Jones Newswires

November 10, 2016 12:25 ET (17:25 GMT)

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