Chancellor George Osborne announced a “landmark feasibility study” into the idea so that the British and the Chinese stocks can be traded in both countries.
He believes that the UK and China would stick together despite the problems with the Chinese economic growth and the stock market turmoil.
Mr Osborne made the pledge in a speech at the Shanghai Stock Exchange.He described the exchange as the "epicentre" of the recent volatility in global markets.The exchange's benchmark index has fallen nearly 40% since June.The chancellor is visiting China to boost commercial and political ties.His trip comes ahead of a state visit to the UK by Chinese President Xi Jinping in October - the first by a Chinese leader for 10 years.China recently revised down its 2014 growth figure from 7.4% to 7.3% - its weakest showing in nearly 25 years.For this year, the government is targeting annual economic growth of about 7%.Growing evidence that the world's economic powerhouse is slowing down has caused major investment market falls. "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.He said the two countries should work together to make the UK "China's best partner in the West".
Interesting read!
ReplyDeleteIt's an interesting challenge.
ReplyDeleteIt would be landmark if this is successful.
ReplyDelete