BEIJING: China and Britain have vowed to continue and strengthen cooperation on a wide range of economic, financial and trade issues, including speeding the introduction of a London-Shanghai stock connect program.
In a joint statement on Saturday, coinciding with an official visit to China by British finance minister Philip Hammond, the countries also said they opposed trade protectionism and reaffirmed their support for the World Trade Organization as a key pillar of the global trade system.
The statement comes as China, in an unusual step, accused the US and the EU of breaking promises that they made when China joined the WTO.
Speaking at a press conference in Beijing together with Chinese Vice Premier Ma Kai, Hammond said the two countries were also discussing a long-awaited London-Shanghai stock connect program, as well as a possible scheme to connect their bond markets.
“We have agreed to accelerate the final preparations for the London-Shanghai stock connect initiative and we’ve agreed to commence feasibility studies for a UK-China bond connect and for mutual recognition of funds between the two jurisdictions,” he said.
Hammond, who also visited a separate forum on Saturday where the London and Shenzhen stock exchanges signed a pact on supporting innovative companies, said he hopes to see more Chinese small firms “make the most of our country’s startup expertise, networks and capital raising capabilities.”
Fang Xinghai, vice chairman of China Securities Regulatory Commission, told the forum that China is looking to increase cooperation with Britain.
“China’s savings are ample and we should create conditions to turn more savings into capital of innovative firms, rather than letting most of the savings stay in the property market,” said Fang. “If we can achieve this, China’s economy will move up to a new level.”
Talks on the Shanghai-London stock connect scheme, which would allow investors on one bourse to invest in the other, started two years ago, but progress has been slow partly due to Britain’s unexpected decision to leave the EU.
Closer ties between China and UK capital markets would be welcomed by London, whose future as a global financial hub is clouded by Brexit. It would also be a boon to the London Stock Exchange Group, which is grappling with turmoil including the recent abrupt departure of its CEO, Xavier Rolet.
For China, connecting London and Shanghai’s exchanges would mark another milestone in its deregulation of capital markets. Beijing’s commitment to financial reform has won global recognition, with US index publisher MSCI agreeing to include China A-shares in its global indexes next year.
The London-Shanghai stock connect is modeled after a similar scheme that links Hong Kong and Shanghai, but it faces more technical and regulatory challenges, as Chinese and British investors trade in different time zones.
Other areas of cooperation highlighted in Saturday’s joint statement include encouraging each country’s banks to increase their presence and activity in the other country, the promotion of China-UK cross-border yuan business, an agreement to cooperate on ultra-low-emission vehicles, and support of the yuan as a settlement currency.
China and the UK will establish a new joint expert group to exchange views on macroeconomic and fiscal policy, the joint statement said.
Former British prime minister David Cameron will also be involved in a proposed $1 billion bilateral investment fund, the statement added.
— REUTERS
China, UK vow to bolster economic cooperation
China, UK vow to bolster economic cooperation
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
