Osborne outlines plan to link UK-China stock markets

Mr Osborne said the proposal for the creation of a direct link between the London and Shanghai stock exchanges would allow United Kingdom firms to raise funds in China and for Chinese companies to invest in Britain.

Britain’s exports to China have increased fivefold since 2003 and the country has risen from ninth to sixth place in the global table of destinations for United Kingdom goods and services.

Earlier this week he unveiled £2 billion of “subsidies” to encourage Chinese investment in Britain’s nuclear power industry.

So thousands more pupils will be learning Mandarin in school by 2020 thanks to £10 million in funding we are announcing today.

George Osborne is travelling to Shanghai, the “epicentre” of China’s summer stock market meltdown, in a show of solidarity on Tuesday.

The figures leave Chancellor of the Exchequer George Osborne on track to meet his target of cutting the deficit to £69.5bil, or 3.7% of gross domestic product (GDP), in the fiscal that began in April.

‘Chinese stock markets are down by 40 per cent this year, ‘ she said.

Kevin McCabe, Chairman of the Scarborough Group said: “We are delighted to join the Chancellor on this historic visit moreover we appreciate the invaluable support of the UK Government in helping us to create closer global business links”.

Sir Vince said he remained optimistic about China’s long-term prospects, but added: ‘George Osborne is making a big gamble that China will turn out well’.

He rejected the argument that Britain should respond to Chinese volatility by drawing back from the financial linkages established over the last few years, which have seen the City become the largest trading centre for the renminbi currency outside Asia.

Osborne said Britain had “the right individuals to decide” including “the representative has flagged, I think pretty obviously, the bearing interest rates are heading”.

‘Connecting our stock markets means more jobs, more investment, higher living standards in both our countries’.

Mr Osborne hopes British firms can secure contracts in cities like Urumqi, which are off the beaten track but are set for an explosion of development because they lie on the route of the “new Silk Road” linking China by rail and road with Europe.

“Of course there have been ups and downs”.

“The government needs to match its rhetoric with action and boost our economy by overhauling the Chinese visa system”.

“Whatever the headlines, regardless of the challenges, we shouldn’t be running away from China”, said Mr Osborne, adding that he “very deliberately chose” the location of the stock exchange to send out his message.