By Zhang Liping & Wang Gang, Research Team on “Sino-British Capital Market Cooperation in the Context of RMB Internationalization”, Research Institute of Finance, DRC

Research Report No. 90, 2016 (Total 4973) 2016-7-11

Abstract: China and Britain jointly opened a golden age of comprehensive strategic partnership in 2015. In the context of enhanced RMB internationalization, financial cooperation including capital market cooperation between the two countries is becoming an important part of economic cooperation between China and Britain. However, with Britain being the established international financial center and China as the second largest economy with swift development, the potential of capital market cooperation between the two nations is still not fully released. This report points out that capital market cooperation should be based on the basis and features of the financial markets and the regulatory legal framework of the two nations, with a reciprocal and win-win cooperation mode. In the future, the key areas of capital market cooperation include four aspects: stock market, bond market, green finance and financial regulation. And cooperation in the above-mentioned fields requires both sides to overcome and solve the existing difficulties and increase information exchanges and cooperation relating to products, capital and business.

Key words: Sino-British Cooperation, capital market, RMB internationalization