“I want to see our stock markets in London and Shanghai formally connected, with United Kingdom firms raising funds from Chinese savers, and Chinese firms listing in London”, the chancellor said.
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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.
He also said the British government would provide 2 billion pounds in initial support for the Hinkley Point project, which is owned by the British subsidiary of French energy company EDF with China General Nuclear Corp (CGN) and China National Nuclear Corp (CNNC) expected to be investors.
So thousands more pupils will be learning Mandarin in school by 2020 thanks to £10 million in funding we are announcing today. He revealed that his 12-year-old daughter Liberty is studying the language.
She warned there was a danger that plans to link the London Stock Exchange directly to stock markets in China could pose a risk to economic stability here.
“This week we’ve announced with the Chinese government a landmark feasibility study to look at how we could do this”, Osborne told the crowd at the Shanghai Stock Exchange, according to a United Kingdom government transcript of the speech.
Chancellor George Osborne’s borrowing targets have been dealt a blow after Britain’s public finances spiralled to a £12.1billion deficit last month, the widest August shortfall for three years.
Howard Archer, chief United Kingdom and European economist at HIS Global, said the August figures were “a nasty surprise for the Chancellor”.
Mr Osborne rejected the argument that Britain should respond to Chinese volatility by drawing back from the financial links established over the last few years, which have seen the City become the largest trading centre for China’ s 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”, he said.
During his speech in Shanghai, Mr Osborne stressed that recent market volatility sparked by fears of a slowdown in China, should not be allowed to deter the two nations from developing closer commercial and financial links.
Chinese growth had driven the recovery after the 2008 crash, he said, adding: ‘The world still needs China, we need China to power our economy forward.
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“Whatever the headlines, regardless of the challenges, we shouldn’t be running away from China”.
