United Kingdom's HM Treasury launches UK-China Financial Working Group as Bank of China’s London Branch is designated second RMB clearing bank

HM Treasury announced enhanced UK-China cooperation in financial services, centred on the launch of a UK-China Financial Working Group and the designation of Bank of China’s London Branch as the United Kingdom’s second renminbi (RMB) clearing bank. The package also includes agreed areas for further work on innovative biodiversity financing and more efficient cross-border settlement services to support trade and investment flows. The new working group is intended to provide structured, technical dialogue between UK and Chinese government and regulatory authorities, including discussions on financial stability, supervision and regulatory developments in both markets. It was launched in Beijing during the Prime Minister’s visit to China alongside a UK-China financial roundtable with industry, attended by over 50 representatives from British business, including 11 financial and professional services firms, and covered financial market development and financial sector innovation. Cooperation areas cited in the announcement include exploring RMB-denominated sovereign biodiversity bond issuance. The working group operates under the UK-China Economic and Financial Dialogue and reports to Chancellor Rachel Reeves and Chinese Vice Premier He Lifeng. The inaugural meeting took place on 31 January 2026, and the next edition of the Economic and Financial Dialogue is planned for London later in 2026.