Landmark Agreements Secured After First UK-China Financial Working Group In Beijing.

Beijing/London; February 2026: In pursuant to the visit of the Prime Minister Sir Keir Starmer to Peoples Republic Of China on January 30th; landmark agreements have been secured, wherein British jobs and businesses to be supported by enhanced cooperation with China in financial services.

Major commitments secured during the forum will make it easier for UK corporate’s to trade with China, strengthen London’s status as the world’s leading international financial hub, and further back the 370,000 British jobs supported by UK exports to China.

The Bank of China’s London Branch has been designated as the UK’s second renminbi (RMB) clearing bank, further enhancing London’s financial market infrastructure. This broadens the range of services available to UK businesses trading with China, and reinforces the City’s role as a leading global centre for cross‑border finance.

The UK-China Financial Working Group is a new formal mechanism for structured, substantive, and technical discussions on financial policy between government and regulatory authorities in both countries. It operates under the framework of the UK-China Economic and Financial Dialogue and reports directly to the Chancellor Rachel Reeves and Chinese Vice Premier He Lifeng. 

The inaugural meeting was held on Saturday 31st January 2026 in Beijing and brought together senior officials from HM Treasury, the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority alongside their Chinese counterparts from the People’s Bank of China, the Ministry of Finance, and financial regulators.

A UK-China financial roundtable with industry was also held during the visit, with participation from regulators and financial institutions from both markets. Topics of discussion included financial market development and financial sector innovation.

Fostering secure and resilient growth was a key focus of the Financial Working Group, with technical discussions held between UK and Chinese regulators around deepening cooperation on financial stability, supervision, and regulatory developments in both markets. Agreements were also reached to pursue new cooperation between the UK and China on innovative financing, such as RMB-denominated sovereign biodiversity bond issuance, cementing the City’s role as the global hub for green finance.

Economic Secretary to the Treasury Lucy Rigby KC MP said: “The potential that stems from the deepening of UK’s financial services relationship with China is huge. Securing new cooperation on innovative biodiversity financing, alongside a second RMB clearing bank and greater access for our firms, demonstrates the depth of opportunity when we engage consistently and pragmatically. Through sensible and practical dialogue, we’re creating the conditions for British financial services to thrive – supporting jobs and growth across Britain”.

As the world’s second largest economy and the UK’s third largest trading partner, a stronger financial relationship with China directly benefits working people and businesses across Britain, including through better access to Chinese markets. The visit follows the successful 2025 UK-China Economic and Financial Dialogue, which secured tangible benefits including new licences and quota allocations for UK financial services firms.

Bill Winters CBE, Group Chief Executive, Standard Chartered, said: “A formal cadence of regulatory dialogue is essential for the smooth functioning of global financial markets. The establishment of a UK-China Financial Working Group will be a useful platform to test and work on areas of shared interest between the two markets and builds on the positive momentum achieved at the 2025 Economic and Financial Dialogue. We look forward to more progress as we head into the next edition in London later this year”.

Brendan Nelson, Chairman, HSBC said: “The inaugural meeting of the UK-China Financial Working Group marks a positive step forward in further enhancing financial sector cooperation and harmonisation”.

David Schwimmer, CEO, London Stock Exchange Group said: “We welcome and support the efforts of the UK-China Financial Working Group – an important step in supporting growth and strengthening ties between UK and Chinese financial markets. Realising the opportunities that exist depends on sustained government-to-government and regulator-to-regulator dialogue. We look forward in improving connectivity in support of resilient capital flows, and two-way investment”.

1st UK-China Financial Working Group

JOINT READOUT:

1. Both sides welcomed the establishment of the UK-China Financial Working Group (FWG) led by

the People’s Bank of China (PBOC) and HM Treasury (HMT). The inaugural meeting of the Financial

Working Group was held in Beijing on 31 January 2026, co-chaired by PBOC Governor Pan Gongsheng and the Economic Secretary to the Treasury Lucy Rigby KC MP.

2. The meeting convened senior officials from the PBOC, the Ministry of Finance (MOF), the National

Financial Regulatory Administration (NFRA), the China Securities Regulatory Commission (CSRC),

and the State Administration of Foreign Exchange (SAFE) on the Chinese side, and from HMT, the

Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct

Authority (FCA) on the UK side.

3. The Financial Working Group was established as a key outcome of the consensus reached by UK

Prime Minister Keir Starmer and Chinese President Xi Jinping during the Prime Minister’s visit to

China from 28-31 January 2026. The Working Group provides a structured and technical channel

for substantive exchange on financial policy. It operates under the framework of the UK-China

Economic and Financial Dialogue (EFD) and reports directly to UK Chancellor of the Exchequer

Rachel Reeves and Chinese Vice Premier He Lifeng.

4. Financial authorities from both sides exchanged views on global macroeconomic developments

and financial stability, financial regulation and supervision, market development, and financial

sector innovation including on sustainable finance. The discussion produced a range of specific

conclusions.

5. Both sides agreed to work towards the signing of a Memorandum of Understanding on

cooperation in central counterparty (CCP) supervision between the PBOC and the BoE, as well as

continuing all necessary cooperation to support UK equivalence and recognition processes for

Chinese CCPs and Chinese processes for UK CCPs.

6. Both sides discussed the importance of global financial stability, supported by robust crisis

management structures and resolution frameworks as well as close cooperation between financial

authorities in both jurisdictions. To support information sharing and coordination in times of

financial stress, as well as to promote operational resilience, HMT and the PBOC agreed to enhance

cooperation on crisis management, and on recovery and resolution frameworks.

7. The UK and China acknowledged the importance of addressing counterfeiting of currency and the

importance of effective bilateral cooperation in jointly addressing the harm caused by counterfeit

currency. In this context, both sides recognise the important role of a robust legal framework, as

well as a convenient and efficient mechanism for sharing information on counterfeit currency,

amongst other measures, in order to suppress the manufacture and export of counterfeits and

associated materials that simulate banknote security features.

8. Both sides reaffirmed their commitment to implementing the Financial Action Task Force (FATF)

Standards. Both sides face common challenges posed by fraud and other cross-border criminal

activities, and agree to enhance international cooperation in combatting money laundering and

related crimes.

9. Both sides reiterated their recognition of the pivotal role that capital markets play in delivering

growth in the real economy, through the ability to raise capital and through efficient capital

allocation. China notes the UK’s recent reforms to enhance and streamline its listings regime,

including for international companies. Both sides encourage eligible companies to be listed in each

other’s market, including via the UK-China Stock Connect, facilitating access to a diverse global

investor base and institutional capital, in order to finance international growth and business

development. Both sides welcomed HSBC receiving approval to trade China Treasury Bond Futures

on the China Financial Futures Exchange.

10. China recognised London’s role as a leading global centre of foreign exchange and its position as a

leading offshore hub for renminbi (RMB) trading. China recognises that London is one of the

largest, most vibrant, and innovative offshore RMB markets, and supports UK-based Chinese

financial institutions to develop new RMB-denominated financial products. Both sides welcome

Bank of China London Branch becoming the second RMB clearing bank in the UK.

11. Both sides reaffirmed their commitment to explore greater market connectivity, including in the

areas of wealth management and pensions. Both sides held in-depth discussions on exploring the

feasibility of a UK-China Wealth Connect programme to facilitate two-way investment flows,

channel patient capital, and deliver long-term stable returns for investors in both markets.

12. Both sides welcomed the continued progress in bilateral cooperation on green finance. The UK

and China recognise the important role that financial markets can play in addressing biodiversity

loss and protecting rich natural ecosystems. Both sides agree to strengthen knowledge sharing and

capacity building efforts on sustainable finance, including on transition finance, and emerging

nature-related financing frameworks.

13. A UK-China industry roundtable was held alongside the Financial Working Group, with

participation from regulators and financial institutions from both sides, to discuss financial market

development and cooperation, as well as financial sector innovation.

14. Both sides endorsed the UK-China Financial Working Group as a mechanism to support technical

regulatory exchange, as well as dialogue on market development, innovation, and financial

stability and resilience, and look forward to it meeting on a regular basis.

Team Maverick.