Monday May 11, 07:40 PM
Britain, China announce stock market accord
LONDON (AFP) - Britain and China struck an accord on Monday allowing the two countries' companies to list on each other's stock exchanges.
The agreement was reached by Britain's finance minister Alistair Darling and Chinese Vice Premier Wang Qishan following several hours of meetings.
"China agrees to allow qualified foreign companies including UK companies to list on its stock exchange through issuing shares or depository receipts in accordance with relevant prudential regulations," a statement said.
At a press conference with Wang, Darling said the move would lead to "British companies listing in China and Chinese companies listing in the United Kingdom."
It is expected that the agreement, which follows years of negotiations, will particularly benefit financial services companies like giant lender HSBC (LSE: HSBA.L - news) -- which is already traded in Hong Kong -- and could lead to new listings within months.
The deal may also benefit the energy sector, which was highlighted by both Darling and Wang at the press conference.
"We stress the importance of expanding cooperation and technology transfers in the areas of energy conservation, energy efficiency improvement and new energy development and utilisation," Wang said.
The Chinese vice premier also met Prime Minister Gordon Brown. Brown's spokesman said afterwards the talks had been "constructive" and "demonstrated the strength of our economic relationship.
"The prime minister and vice premier discussed the global economy and follow-up to the G20 summit," the spokesman said.
He added Brown had also offered his condolences to China ahead of the first anniversary of the Sichuan earthquake on May 12.
Brown also raised the issue of human rights in Tibet, "on which the UK supports further dialogue between the Dalai Lama's representatives and the Chinese government," the spokesman said.
Darling, in a comment piece in Monday's Times (1832.HK - news) newspaper, said Britain and China had to do more to push forward an agreement reached at last month's G20 summit in London, to promote ties between the two financial markets, enhance trade links and tie future growth to environmental sustainability.
"We must do more to seize the shared opportunities to learn, trade and invest," Chancellor of the Exchequer Darling wrote. "Thousands of jobs, now and in the future, depend on it."
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