Sunday 13 October 2019 7:03 pm

City of London Corporation looks east to China in post-Brexit plans

London must capitalise on the US-China trade war to increase Chinese investment and help offset the potential effects of Brexit, according to the City’s governing body.

The City of London Corporation proposes to position London as a “top global financial centre” and as a “supporter to China’s financial reform” in a motion to be reviewed by the body’s policy committee this week.

Read more: City of London Corporation secures £450m in external funding for major projects

The motion lays out plans to boost investment in the capital by making London a major offshore hub for the renminbi currency, attracting more Chinese asset management firms and increasing co-operation on cross-country green finance initiatives.

The report also says it is vital to encourage more Chinese companies to list on the London Stock Exchange to cope with post-Brexit uncertainty.

The corporation highlights that London can capitalise on concerns that US President Donald Trump will implement further sanctions on Chinese companies.

“Chinese companies have become more cautious about using the US markets to raise capital because of the trade war,” the report reads.

“This presents an additional opportunity for London to be considered as a prime international location for Chinese Initial Public Offerings (IPOs).”

The motion also discusses the “urgent need” for the UK to work toward a post-Brexit trading deal with China.

Regulatory alignment is highlighted as one of the key goals to achieve this.

Iain Anderson, executive chairman of public affairs group Cicero, said the City had to “fire up” investment with Beijing at every opportunity.

Read more: Donald Trump reveals phase one trade agreement with China

“China is one of the top global economies and there is a long history of significant trade between here and there,” he said.

A City of London spokesman said the body could not comment on the document until it was reviewed by the policy committee this week.

Share
Tags: