The first meeting of the China-UK Financial Working Group: Supporting Chinese-funded financial institutions in the UK to develop more financial products denominated in RMB

Recently, the first meeting of the China-UK Financial Working Group was held in Beijing. The meeting was co-chaired by Pan Gongsheng, Governor of the People's Bank of China, and Lucy Frazer, Economic Secretary to the Treasury of the UK. Senior representatives from financial regulatory bodies, including the People's Bank of China, the Ministry of Finance, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, as well as the UK Treasury, the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority, attended the meeting.

The China-UK Financial Working Group was established in May 2025, aiming to provide an institutional platform for regular communication and coordination in financial policy between the two countries and to promote the formation of substantive cooperation outcomes. The convening of the first meeting of the working group is one of the important achievements of recent high-level exchanges between China and the UK. The relevant situation and outcomes of the meeting will be reported to the heads of the China-UK Economic and Financial Dialogue.

At the meeting, the financial regulatory bodies of both sides exchanged in-depth opinions on topics such as the global macroeconomic situation and financial stability, financial regulation, the development and connectivity of financial markets, anti-money laundering, and cooperation against counterfeiting, reaching multiple practical cooperation outcomes. Both sides agreed that the China-UK Financial Working Group will play an active role in promoting communication between the financial regulatory authorities of both sides, advancing the development and innovation of financial markets, and maintaining financial stability in both countries.

As a supporting activity of the China-UK Financial Working Group, a roundtable meeting was held with financial institutions. Pan Gongsheng and Frazer attended the meeting and delivered speeches, while Xuan Changneng, Vice Governor of the People's Bank of China, chaired the meeting. Deputy Minister of Finance Liao Min, Deputy Director of the National Financial Regulatory Administration Fu Wanjun, Vice Chairman of the China Securities Regulatory Commission Li Ming, Deputy Director of the State Administration of Foreign Exchange Xu Zhibin, Deputy Governor of the Bank of England and Director of the Prudential Regulation Authority Sam Woods, Chair of the Financial Conduct Authority Charles Randell, and Director General of International Affairs at the UK Treasury John Glen also attended the meeting. The financial regulatory bodies of both sides listened to suggestions and demands from major financial institutions in both countries regarding the development of financial markets, cooperation opportunities, and innovations in the financial sector and responded accordingly. Major leaders from financial institutions such as Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, People's Insurance Company of China, as well as HSBC Group, Standard Chartered Group, Aberdeen Group, Prudential Group, Schroders Group, London Stock Exchange Group, and the City of London participated in the meeting.

Consensus Document of the First Meeting of the China-UK Financial Working Group

On January 31, 2026, the first meeting of the China-UK Financial Working Group was held in Beijing. The meeting was co-chaired by Pan Gongsheng, Governor of the People's Bank of China, and Lucy Frazer, Economic Secretary to the Treasury of the UK. Senior representatives from financial regulatory bodies, including the People's Bank of China, the Ministry of Finance, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, as well as the UK Treasury, the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority, attended the meeting.

The convening of the first meeting of the China-UK Financial Working Group is one of the important achievements reached during UK Prime Minister Keir Starmer's visit to China from January 28 to 31, 2026. The working group provides an institutional platform for China and the UK to conduct financial policy exchanges. The relevant situation and outcomes of the meeting will be reported to the heads of the China-UK Economic and Financial Dialogue At the meeting, the financial management departments of both sides exchanged in-depth opinions on global macroeconomic conditions and financial stability, financial regulation, financial market development, and financial innovation, including sustainable finance, and reached a series of specific consensus.

Both sides will promote the signing of a memorandum of understanding on central counterparty regulatory cooperation between the People's Bank of China and the Bank of England, and will continue to carry out necessary cooperation to support the mutual regulatory equivalence certification of both central counterparties.

Both sides exchanged views on the importance of global financial stability, emphasizing the importance of improving crisis management and resolution frameworks and the close cooperation between the financial management departments of the two countries. To strengthen information sharing and coordination during periods of pressure on financial markets and enhance the robustness of the financial system, the People's Bank of China and the UK Treasury agreed to strengthen cooperation in crisis management and recovery and resolution frameworks.

Both sides recognized the importance of combating counterfeiting, believing that effective bilateral cooperation is significant in addressing the harm caused by counterfeit currency. Both sides acknowledged that a sound legal framework and an efficient and convenient information-sharing mechanism for counterfeiting are crucial for curbing the production and cross-border circulation of counterfeit currency and its imitation anti-counterfeiting materials.

Both sides reiterated their commitment to implementing the standards of the Financial Action Task Force (FATF). Both sides face challenges posed by cross-border criminal activities such as fraud and agreed to further strengthen international cooperation in combating money laundering and related crimes.

Both sides reiterated that capital markets play an important role in promoting the growth of the real economy. The Chinese side noted the recent reform measures by the UK side regarding the listing system (including the listing system for multinational enterprises). Both sides encourage eligible enterprises to raise funds by listing in each other's markets through the connectivity of the China-UK stock markets, thereby connecting with a diverse range of global investors and institutional funds to provide financial support for global business development. Both sides welcomed HSBC's approval to conduct government bond futures trading at the China Financial Futures Exchange.

Both sides recognized London's position as a leading global foreign exchange trading center and an important offshore renminbi business hub. London is one of the largest, most vibrant, and innovative offshore renminbi markets, and the Chinese side supports Chinese financial institutions in the UK to develop more financial products denominated in renminbi. Both sides welcomed the Bank of China's London branch becoming the second renminbi clearing bank in the UK.

Both sides reiterated their commitment to exploring market connectivity in areas such as wealth management and pensions. Both sides discussed the feasibility of the China-UK Wealth Connect to promote two-way investment flows, guide long-term capital, and achieve long-term stable returns for investors.

Both sides welcomed the progress made in China-UK green finance cooperation. Both sides recognized that financial markets can play an important role in addressing biodiversity loss and protecting rich natural ecosystems. Both sides agreed to strengthen knowledge sharing and capacity building in the field of sustainable finance, including transition finance and nature-related financing frameworks.

During the China-UK Financial Working Group meeting, a roundtable was held with financial institutions to discuss topics such as financial market development, cooperation opportunities, and innovation in the financial sector.

Both sides unanimously support the China-UK Financial Working Group as an important dialogue mechanism for conducting technical regulatory exchanges, financial market development and innovation, and financial stability and resilience, and look forward to the working group holding regular meetings The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk