China UK Financial Working Group Holds First Meeting in Beijing

The inaugural meeting of the China-UK Financial Working Group (FWG) convened in Beijing, co-chaired by Pan Gongsheng, the governor of the People's Bank of China (PBC), and Lucy Rigby, the economic secretary to HM Treasury. This meeting represents a significant development following recent high-level exchanges between China and the UK.

During the discussions, representatives from both nations explored various themes including global macroeconomic trends, financial stability, regulatory frameworks, market growth, and innovations in finance, particularly focusing on sustainable finance.

The two sides expressed a commitment to formalizing their partnership by signing a Memorandum of Understanding aimed at enhancing cooperation in central counterparty (CCP) supervision between the PBC and the Bank of England (BoE). They also agreed to collaborate closely on supporting the equivalence and recognition processes for CCPs in both countries.

In efforts to bolster resilience amid financial disturbances, the PBC and HM Treasury outlined plans to enhance cooperation regarding crisis management and recovery frameworks, fostering a more coordinated response during potential financial stresses.

The discussions also highlighted the importance of encouraging qualified companies to seek listings in each other's markets, facilitated by the China-UK Stock Connect initiative. This is expected to broaden access to a diverse range of global investors while supporting businesses in their international growth endeavors.

Acknowledging London as a major offshore yuan market, China indicated support for its financial institutions in developing new yuan-denominated financial products. The parties welcomed the Bank of China's London Branch as the second yuan clearing bank in the UK, signifying an advancement in their financial collaboration.

The FWG, established in May 2025, serves as a platform for consistent dialogue and coordination on financial policies, aiming for concrete outcomes in China-UK financial relations. The group directly reports to the leaders of the China-UK Economic and Financial Dialogue.

In conjunction with the FWG meeting, an industry roundtable was held, involving regulators and financial institutions from both countries. This session focused on market development and innovation, underscoring the significance of the FWG as a facilitator of regulatory exchanges and financial stability.

The meeting set out a roadmap to enact positive outcomes from UK Prime Minister Keir Starmer's recent visit to China. Experts emphasized the immense potential arising from a strengthened relationship between UK financial services and Chinese markets.

Rigby noted that the collaboration could lead to groundbreaking opportunities, particularly in innovative biodiversity financing and enhancing access for firms in both nations. Meanwhile, Zhou Mi, a senior research fellow, remarked that this cooperation also allows China to better integrate into the global financial system, thereby providing avenues for British companies to engage with China's vast market.

The timely nature of this meeting has broader implications, as it transforms diplomatic outcomes into actionable cooperation, setting a benchmark for effective implementation across various sectors and reinforcing mutual trust in ongoing collaboration.