Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of recent trends in the level of retail investment on economic (a) growth and (b) resilience.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

The Government wants to see more consumers participate in capital markets and benefit from the long-term financial security and returns that investing can provide.

The Financial Services Growth & Competitiveness Strategy call for evidence, which closed on 12 December, identified that increasing retail participation in capital markets could support long-term sustainable growth within the sector and the wider economy. The call for evidence welcomed further evidence on how to improve consumer engagement with investing, and the Government is considering the feedback provided.

The Government is already taking forward work to improve the information available to retail investors to help with their decision-making. This includes reforms to the UK’s retail disclosure regime and exploring options to expand the availability of support through the joint Government and FCA review of the boundary between financial advice and guidance.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department's policy paper entitled 2025 UK-China Economic and Financial Dialogue: fact sheet, published on 11 January 2025, what steps the Government plans to take to help implement new (a) commercial licences and (b) quota allocations for UK firms in China.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation.

The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy.

In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps the Government plans to take to help asset management firms access the Chinese market.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation.

The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy.

In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of new UK-China over-the-counter bond trading on future trends in the UK's economic growth rate.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation.

The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy.

In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she plans to take steps to support greater supervisory data sharing between UK and Chinese financial regulators.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation.

The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy.

In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of China's commitment to issue an inaugural offshore sovereign green bond on the competitiveness of the domestic financial sector.

Answered by Emma Reynolds - Economic Secretary (HM Treasury)

As the Chancellor’s Statement to the House on 14th January set out, the dialogue has delivered a set of tangible benefits to ensure that British firms have greater access to the world’s second largest economy, while safeguarding our national security and securing commitments to enhance financial regulatory and supervisory cooperation.

The total value of what was agreed is worth £600 million over the next five years for the UK economy and sets us on course to deliver up to £1 billion of value for the UK economy.

In particular, the agreement secured: new licences and quota allocations for UK asset managers, which will immediately improve their operating access and competitiveness in China; the launch a feasibility study into a UK-China Wealth Connect; the launch of UK-China over-the-counter bond business, which allows international investors to trade and settle RMB bonds more easily through the UK; and a commitment for the issuance of Sovereign and Corporate green bonds in the UK solidifying the City’s role as a Global Financial Centre and benefitting UK firms through increased fees for delivering this business.