World

The UK cannot afford to give the “cold shoulder” to China, the City minister said on Monday, in comments that will distance the British government from the Biden administration’s protectionist crackdown. Addressing financial services bosses at the City Week conference in London’s Guildhall, Bim Afolami said it was “crucial” to engage with strategic competitors such as Beijing, and that the UK risked losing control of its economic future if it failed to find common ground. “Like with any bilateral relationship, we don’t agree on everything, [but] we are very clear that you simply cannot give the cold shoulder to an economy that is home to a fifth of the world’s globally systemic important banks, four of the world’s largest banks, and almost a third of the world’s leading global finan...

In recent years, China has embarked on an ambitious journey to redefine its role in the global financial landscape, leveraging technological advancements to potentially reshape how global transactions are conducted. Central to this initiative is the pilot program for the e-CNY, China's digital currency, which is now making its way into overseas markets, notably in Hong Kong, for retail use which was announced in May 2024. This move mirrors China's previous efforts to expand the reach of its payment solutions, such as UnionPay and Alipay, which have had mixed success abroad. The path forward for the e-CNY is shrouded in uncertainty. The introduction of a state-backed digital currency on an international scale presents a myriad of technological, regulatory, and geopolitical challenges...

Investment banks including Goldman Sachs, UBS and BNP have become more positive on stocks in China, with foreign selling having subsided. Foreign investors were net buyers of Chinese stocks for a third straight month in April, the longest streak of foreign buying in a year. Global emerging market funds rolled back their underweight position on mainland China stocks and turned neutral, HSBC said in a report last month. Some international hedge funds have shifted their investment positions from US or Japan stocks to China stocks over the past week, Japanese investment bank Daiwa Capital Markets said in a report. Goldman Sachs said changes are afoot in China that point to a potentially stronger risk appetite and a more conducive trading environment for A shares in the near...