Dialogue session full of good news

Deals worth more than 500 million pounds ($628 million) between Chinese and British businesses were announced on June 17 during Vice-Premier Hu Chunhua's visit to the United Kingdom to co-chair the 10th China-UK Economic and Financial Dialogue alongside UK Chancellor of the Exchequer Philip Hammond.

Speaking at a joint news conference after the event, Hu said the two nations agreed to 69 policy outcomes during fruitful discussions on the macroeconomic situation and global economic governance, trade and investment, megaproject cooperation, and financial cooperation, as well as cooperation in new fields and those of strategic significance.

Hammond hailed the dialogue as a "great success", adding that the UK's economic relationship with China was "key to our global future".

Britain is looking to bolster trade ties with major economies as it prepares to leave the European Union.

In total, the deals are expected to deliver 175 new direct jobs in the UK, and offer significant wins for the financial services sector as well as for enterprises in the education, creative enterprises, food and agriculture, and technology sectors.

A landmark market access agreement for British farmers was also announced on the same day that was supported by the Department for International Trade and the Department for the Environment, Food and Rural Affairs, which could put UK producers on track to export British beef and pork to China by the end of 2019. The agreement is expected to be worth an estimated 230 million pounds in the first five years and is likely to offer a significant boost to the UK's farming sector.

Founded in 2008, the economic and financial dialogue serves as an important mechanism for bilateral communication and policy coordination between China and Britain in the areas of economic and financial issues of strategic significance that have a long-term and overarching bearing.

Christopher Bovis, a professor of international business law at the University of Hull, said: "The 10th China-UK Economic and Financial Dialogue signifies the importance of the future Sino-UK trade relations, with an emphasis on large infrastructure projects and financial services. Both economic sectors will benefit enormously from Chinese investment in the UK and China is expected to reciprocate with more market access to its evolving economy."

The launch of the Shanghai-London Stock Connect was a centerpiece of the dialogue. It will allow UK-listed companies to effectively sell shares in China. It marks the first time foreign companies will be able to list in the Chinese mainland.

Investors will be able to trade across London and Chinese time zones, allowing issuers from both markets to raise capital in the other's market. The stock connect means UK-listed companies will be able to be traded by more investors, providing investors with greater choice.

There are almost 1,500 companies listed in Shanghai and more than 260 of them will potentially be eligible to take part in the stock connect, which will allow them to list in London. It is also estimated that China will reach more than $17 trillion in assets under management, also known as AUM, by 2030, having had $2.8 trillion AUM in 2016.