It appears that a new fintech bridge between the United Kingdom and China will be established soon. The London-Shanghai Stock Connect project has been greenlit by the British Government, which indicates that global trade ties between both countries will be strengthened. Ever since the Brexit vote took place, the UK is in dire need of new foreign relations in trade.
UK Bridges The Fintech Gap To China
Fintech efforts can be found all over the world, and the time is now to established early relationships. The United Kingdom and China are looking to connect the London and Shanghai Stock Exchanges, allowing both entities to collaborate on research and new implementation agreements.
Such a direct trading link is beneficial to both parties, as it establishes a digital trade route between the fastest growing economy and the financial capital of the world. This project came to be after a 10-month study, which was eventually backed by UK Chancellor Philip Hammond. Now that the project has been approved, both parties will start collaborating shortly.
But this collaboration goes much further than just establishing a commercial trade route. A total of eight key fintech areas will be addressed, ranging from asset management to fintech, and financial inclusion to insurance. Both entities will collaborate on innovative ideas affecting these industries.
Regulatory compliance is an integral part of fintech operations in any part of the world. In some regions, it is far harder for startups to operate within predetermined regulatory guidelines. China and the UK want to strengthen their regulatory cooperation and boost market access for startups.
UK Fintech Ambassador Eileen Burbidge told the media:
“Naturally, some of the UK’s most ambitious fintech companies want to explore opportunities and set up operations in China, while at the same time Chinese fintech giants and investors are increasingly looking to meet the demand for financial services in the UK. This new fintech bridge will streamline the dialogue between our two fintech sectors, making it easier for fintech to move across borders.”
China has a booming fintech sector, and their efforts have not gone by unnoticed. China is responsible for the creation of nearly one in three fintech unicorns, which is quite an amazing feat. Just last year, the region saw over £2m invested in the financial technology industry. Forging a long-lasting partnership with such a nation will help the UK negate some of the Brexit aftermath.
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