China stocks link plan unveiled

Britain’s Chancellor of the Exchequer George Osborne delivers a speech after a performance for the UK-China Year of Cultural Exchange at National Theatre of China, in Beijing.

Chancellor George Osborne brushed aside fears over the Chinese economy as he called on Britain and China to “stick together” in a speech at the Shanghai Stock Exchange aimed at calming concerns over the Asian giant.

The project has been criticised because of the ever-increasing estimated cost of construction, Government-guaranteed prices more than double the present wholesale price of electricity and repeated delays and cost overruns at nuclear plants in France and Finland using the same reactor technology.

Any link between the two markets would have to overcome significant hurdles, however, including differences in time-zones, and regulatory challenges.

The proximity should give the fund manager closer access and allow easier research of companies listed on the mainland equity markets.

The People’s Bank of China plans to issue a yuan-denominated bond in London, The Wall Street Journal reported, citing a statement from the UK Treasury.

“I want the U.K.to be the natural Western hub for renminbi trading”, Osborne said.

The Chancellor is now touring China to drum up support for a “bridge” with the City of London, as well as attempting to reassure the markets.

Steady financial markets will be critical for the president this week when he visits the United States, where he is likely to be grilled on China’s actions to arrest the market slide. The guarantee paves the way for Chinese investment in the UK’s nuclear industry.

This is a critical moment in Britain’s relationship with China.

Chinese growth had driven the recovery after the 2008 crash, he said, adding: “The world still needs China, we need China to power our economy forward”.

While it was necessary to “stay vigilant to short term ups and downs”, Mr Osborne said he was “cautiously optimistic” about China’s prospects for the long term.

Pan-European stock exchange Euronext said today that it will partner with Shanghai Stock Exchange for the marketing of its cash, derivatives, commodities and index data in China.

“They very much want to have their design up and running in the UK”. In both the first and second quarter this year, growth remained stuck at 7.0 percent, slower than all of last year. We’re a multi-party democracy.

Of course, do we disagree about human rights?

“We should be doing more business with China, we should be better connected with China economically, our financial institutions should establish stronger links”.

“I think it is a partnership that is good for both countries”.