Cooperation projects inked

"My ambition is to make sure London is the Western hub for yuan business," Osborne said. "More trade and more investment mean more business and more jobs for Britain."

London is already a major global offshore center for yuan trading, with over 60 percent of all yuan payments outside of the Chinese mainland and Hong Kong. But Zhu said that Hong Kong will remain the major offshore hub for yuan trading.

Meanwhile, Chinese banks will be allowed to expand their operations in the UK and to set up wholesale branches.

On the civilian nuclear energy front, though an MOU was signed, the details are yet to emerge. Osborne declined to provide information on how much the deal is worth and on China's specific role.

Earlier media reports said that China General Nuclear Power Group has entered a deal with Electricite de France SA for a planned nuclear plant in southwest England's Hinkley Point. EDF and the UK government had said that the talks over the financial terms of the deal were ongoing.

"The memorandum of understanding on civil nuclear cooperation provides an umbrella where specific commercial deals can take place. We've seen Chinese investment already in London's water supply and Heathrow Airport and we found through all the investments that the Chinese are a very straightforward and transparent partner," Osborne said.

He stressed that investment is a "two-way street", suggesting that UK companies could also participate in China's civilian nuclear projects under the deal.

Regarding infrastructure, Beijing Construction Engineering Group International Co Ltd formed a joint venture with Manchester Airports Group and other partners for a huge real estate development deal near Manchester Airport. The deal is worth 800 million pounds ($1.28 billion) and is expected to create 16,000 jobs.

The UK is already the most popular destination in Europe for Chinese investment, and the country is the second-largest European investor in China.

In the past five years, bilateral trade increased 38.3 percent and investment soared 98 percent.