The City of London, a leading international financial center, is
lobbying China's new sovereign wealth fund to set up a branch in
London.
Alderman John Stuttard, lord mayor of the City of London,
yesterday met Lou Jiwei, chairman of China Investment Corp (CIC),
to discuss the proposal.
"I hope CIC will choose to draw on the UK's expertise in asset
management and use the investment channel for its sovereign wealth
fund," he said before the meeting.
Stuttard's enthusiasm is a departure from other Western
countries' calls to control the activities of sovereign wealth
funds amid fears they could try to seek controlling stakes in
strategic industries.
Lou, who oversees the $200 billion fund to get a better return
on China's $1.43 trillion of foreign currency reserves, last week
said CIC will not seek a controlling stake in its investments and
promised transparency in operating the fund.
Before CIC was formally launched on September 29, it plowed $3
billion into US investment firm Blackstone.
It has yet to open an overseas office and has not disclosed any
further investment.
Stuttard said the UK welcomes investment from China. By the end
of last year, 270 Chinese companies had invested in the UK and the
number has now grown to 340.
The City of London, or the Square Mile, is the UK's financial
center. Bank of China already has a branch there.
The City of London has been under growing pressure to build ties
with Asia.
A report by SAMI Consulting and Oxford Analytica released last
October said the financial district must work hard to develop
better business relations with China and India or risk losing out
to competing cities and countries.
Stuttard, who will meet with top officials from the China
Securities Regulatory Commission today, is also expected to lobby
the Chinese securities watchdog to allow more Chinese firms to
float shares in the UK.
By the end of last year, 27 Chinese companies were listed in the
UK. The number soared to 81 by August, including six mainland
companies and 14 from Hong Kong trading on the main board, and 61
on the AIM.
"I'm confident that China will continue to present tremendous
opportunities for the business of the City of London, take part in
private equity and venture capital, mergers and acquisitions and
listings on the London Stock Exchange," Stuttard said.
The London Stock Exchange is planning to open a Beijing office,
which could play a crucial role in attracting mainland companies to
float in the UK.
(China Daily October 26, 2007)
