Financial services cooperation between the UK and China supports trade, investment flows, and employment linked to exports and cross-border financial activity. The sector also underpins London’s role as an international financial centre by connecting UK firms with overseas markets through settlement and regulatory coordination.
HM Treasury and Economic Secretary to the Treasury Lucy Rigby KC MP announced on 3 February 2026 the launch of the UK-China Financial Working Group in Beijing, alongside agreements to enhance cooperation in financial services, including cross-border settlement and green and biodiversity financing initiatives.
HM Treasury said the measures are intended to improve market access, strengthen financial infrastructure, and support regulatory cooperation between the two countries.
Government Announcement and Diplomatic Context
HM Treasury said the UK-China Financial Working Group was launched during the Prime Minister’s visit to China, with participation from more than 50 representatives from British business, including firms from the financial and professional services sector.
Officials stated that the forum is designed to support jobs, strengthen trade flows, and reinforce London’s role as an international financial hub.
The department said the agreements form part of a wider effort to deepen economic and financial ties with China, the UK’s third largest trading partner, and to build on outcomes from the 2025 UK-China Economic and Financial Dialogue.
Market Access and Financial Infrastructure Agreements
The government confirmed that the Bank of China’s London Branch has been designated as the UK’s second renminbi clearing bank. HM Treasury said this will broaden the range of financial services available to UK firms trading with China and support cross-border settlement activity.
Officials also stated that the working group discussed measures to improve the efficiency and resilience of financial market infrastructure, with a focus on supporting trade and investment flows between the two markets.
- RMB Clearing Services
- Cross-Border Settlement
- Market Infrastructure
Financial Infrastructure Commitments
| RMB Clearing Bank | Bank of China’s London Branch designated as the UK’s second renminbi clearing bank. |
| Business Participation | Over 50 UK business representatives attended the Beijing forum, including 11 financial and professional services firms. |
| Trade Support | Agreements intended to make it easier for UK firms to trade and settle transactions with Chinese counterparts. |
Regulatory Cooperation and Policy Dialogue
HM Treasury said technical discussions were held between UK and Chinese regulators on financial stability, supervision, and regulatory developments in both markets. UK participants included officials from the Bank of England, the Prudential Regulation Authority, and the Financial Conduct Authority.
Chinese counterparts included representatives from the People’s Bank of China, the Ministry of Finance, and national financial regulators. The government said the dialogue is intended to support consistent regulatory engagement and resilient market operations.
Green and Innovative Financing Initiatives
The government confirmed that agreements were reached to pursue cooperation on innovative financing, including exploration of RMB-denominated sovereign biodiversity bonds. HM Treasury said these measures are intended to reinforce London’s role as a global hub for green finance.
Officials stated that the initiatives aim to support sustainable investment and provide new channels for capital flows linked to environmental and biodiversity projects.
- Biodiversity Financing
- Green Capital Flows
- Sustainable Investment
Regulatory and Policy Framework
| Policy Dialogue | Working Group operates under the UK-China Economic and Financial Dialogue and reports to the Chancellor and Chinese Vice Premier. |
| Regulatory Bodies | UK and Chinese financial regulators participated in technical discussions on supervision and market stability. |
| Industry Roundtable | Financial institutions and regulators met to discuss market development and sector innovation. |
Ministerial Comments
Lucy Rigby KC MP, Economic Secretary to the Treasury, said;
“The potential that stems from the deepening of the UK’s financial services relationship with China is huge. Securing new cooperation on innovative biodiversity financing, alongside a second RMB clearing bank and greater access for our firms, demonstrates the depth of opportunity when we engage consistently and pragmatically.”
Lucy Rigby KC MP, Economic Secretary to the Treasury, said;
“Through sensible and practical dialogue, we’re creating the conditions for British financial services to thrive – supporting jobs and growth across Britain. As the world’s second largest economy and the UK’s third largest trading partner, a stronger financial relationship with China directly benefits working people and businesses across Britain.”
To Sum Up
The launch of the UK-China Financial Working Group establishes a formal platform for ongoing financial services dialogue and cooperation.
By confirming new market infrastructure arrangements, regulatory engagement, and green financing initiatives, the government said the agreements are intended to support UK businesses, maintain London’s international financial role, and strengthen trade and investment links between the two economies.
Sources: HM Treasury.
Prepared by Ivan Alexander Golden, Founder of THX News, an independent news organisation delivering timely insights from global official sources. Combines AI-analysed research with human-edited accuracy and context.
