China and The U.K are currently in the midst of talks about creating stronger stock exchange partnerships between London and shanghai and Beijing, despite the ‘Black Monday’ China recently faced on the 24th August 2015.
The announcement came ahead of a speech by the British Chancellor of the Exchequer George Osborne on Tuesday at the Shanghai Stock Exchange. The talks come as Beijing has set itself a 7% gross domestic product growth target this year, whilst forecasters expect actual growth to come in considerably lower than this estimation.
Chancellor George Osborne is currently in China to attend the annual China-UK Economic and Financial Dialogue, looking sat strengthening political and economic ties. He announced a ‘landmark feasibility study’ with the aim of having British and Chinese shares to be traded in both states.
Key partners such as Wang Yang head of A-share Business at Accounting Firm EY said the economic negotiations are sending ‘a message that Beijing is hoping to lift the A-share market through the possibility of expanding market access to more foreign investors.’
“London will also be happy to see more investment from China into its stock market,” she added.
Xu Hongcai, director of economic research at the China Centre for International Economic Exchanges, said it underestimated the ‘mutual desire [of The U.K and China] to seek greater interdependence and co-operation in capital markets.
Despite concern from the U.K regarding past complications and economic turmoil over the housing and stock market ‘bubbles’ George Osborne has suggested he wants to ‘grow our (U.K’s and China’s) markets together over the next 5 years.’
China and The U.K are set to establish more economic and industrial ties, with the proposal of Chinese investment in The U.K’s High Speed Two (HS2) rail programme.