The inaugural meeting of China-UK Financial Working Group has been held in Beijing recently, the People's Bank of China said on February 6, 2026. Photo: Screenshot from the People's Bank of China

The inaugural meeting of the China-UK Financial Working Group (FWG) was held in Beijing recently, co-chaired by Pan Gongsheng, governor of the People's Bank of China (PBC), and Lucy Rigby, economic secretary to HM Treasury. The meeting is one of the outcomes of the recent high-level exchanges between China and the UK, the PBC said on Friday.

During the meeting, financial authorities from both sides exchanged views on global macroeconomic developments and financial stability, financial regulation and supervision, market development, and financial sector innovation including sustainable finance, according to the joint readout of the meeting released by the PBC on Friday.

Both sides agreed to work toward the signing of a Memorandum of Understanding on cooperation in central counterparty (CCP) supervision between the PBC and the Bank of England (BoE), as well as continuing all necessary cooperation to support UK equivalence and recognition processes for Chinese CCPs and Chinese processes for UK CCPs, the readout showed.

To support information sharing and coordination in times of financial stress, as well as to promote operational resilience, the PBC and HM Treasury agreed to enhance cooperation on crisis management, and on recovery and resolution frameworks, per the readout. 

Both sides will encourage eligible companies to be listed in each other's markets, including via the China-UK Stock Connect, facilitating access to a diverse global investor base and institutional capital, in order to finance international growth and business development. 

According to the readout, China recognizes that London is one of the largest, most vibrant, and innovative offshore yuan markets, and that it supports UK-based Chinese financial institutions to develop new yuan-denominated financial products. Both sides welcome Bank of China London Branch becoming the second yuan clearing bank in the UK. 

The China-UK FWG was established in May 2025, aiming to provide a platform for regular communication and coordination on financial policy between the two countries and to promote tangible deliverables. The FWG reports directly to the co-leads of the China-UK Economic and Financial Dialogue, according to the PBC.

A China-UK industry roundtable was held alongside the FWG, with participation from regulators and financial institutions from both sides, to discuss financial market development and cooperation, as well as financial sector innovation. Both sides endorsed the China-UK Financial Working Group as a mechanism to support technical regulatory exchange, as well as dialogue on market development, innovation, and financial stability and resilience, and look forward to it meeting on a regular basis, said the readout.

"The meeting aims to implement a series of positive outcomes from UK Prime Minister Keir Starmers' visit to China," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday. 

"The potential that stems from the deepening of the UK's financial services relationship with China is huge," Rigby said in a UK government press release. "Securing new cooperation on innovative biodiversity financing, alongside a second yuan clearing bank and greater access for our firms, demonstrates the depth of opportunity when we engage consistently and pragmatically."  

Zhou said that the UK, as one of the earliest countries to develop its financial services industry, possesses remarkable global competitiveness and maturity in this sector. "China can further integrate into the global financial system, gaining greater support in areas such as yuan internationalization, cross-border settlement, and green finance. Meanwhile, British companies will find it easier to access China's vast market, particularly in the services, financial, and high-end manufacturing sectors," Zhou noted.

In addition, the meeting also carried demonstrative and driving effects. "Its timely convening marks the transformation of outcomes from Starmer's visit to China into an operable cooperation platform, setting a benchmark for efficient implementation in other areas including high-level security dialogue, while enhancing mutual confidence in the credibility and continuity of cooperation," the expert said.