HM Treasury published a joint readout of the inaugural UK-China Financial Working Group meeting, establishing the group as a new channel for technical discussions on financial policy between UK and Chinese authorities. Operating under the UK-China Economic and Financial Dialogue, the group reports directly to UK Chancellor of the Exchequer Rachel Reeves and Chinese Vice Premier He Lifeng, and its first meeting in Beijing covered global macroeconomic developments and financial stability, financial regulation and supervision, market development, and financial sector innovation including sustainable finance. Authorities agreed to work towards signing a Memorandum of Understanding on cooperation in central counterparty supervision between the People’s Bank of China and the Bank of England, alongside continued cooperation to support UK equivalence and recognition processes for Chinese CCPs and Chinese processes for UK CCPs. Further areas included enhanced cooperation on crisis management and recovery and resolution frameworks to support information sharing in times of financial stress and promote operational resilience, cooperation to address counterfeit currency through stronger information-sharing mechanisms, and reaffirmation of commitments to implement Financial Action Task Force standards and strengthen cooperation against money laundering, fraud, and other cross-border crimes. On market development, the readout highlights support for cross-listings including via the UK-China Stock Connect, HSBC’s approval to trade China Treasury Bond Futures on the China Financial Futures Exchange, Bank of China London Branch becoming the second RMB clearing bank in the UK, discussions on the feasibility of a UK-China Wealth Connect programme, and expanded knowledge sharing on sustainable finance including transition finance and nature-related financing frameworks. The Financial Working Group is expected to meet on a regular basis, with follow-on work flagged on the CCP supervision MoU and further development of the market connectivity and sustainable finance cooperation agendas.
HM Treasury 2026-02-06
United Kingdom's HM Treasury and the People’s Bank of China launch UK-China Financial Working Group and agree to pursue a CCP supervision cooperation MoU
HM Treasury and Chinese authorities formed the UK-China Financial Working Group for technical financial policy discussions. The inaugural Beijing meeting covered macroeconomic developments, financial stability, regulation, market development, and innovation, including sustainable finance. Key agreements involve pursuing a Memorandum of Understanding on central counterparty supervision and enhancing cooperation on crisis management, counterfeit currency, and Financial Action Task Force standards.