The UK and mainland China are considering a new cross-border asset-management link and upgrades to their stock connect scheme to deepen capital-market ties, according to Ashley Alder, chairman of the UK's Financial Conduct Authority. Alder shared these remarks in an exclusive interview ahead of joining UK Prime Minister Keir Starmer's delegation to China.
The UK and mainland China are exploring a new cross-border asset-management link and enhancements to their existing stock connect scheme as both sides aim to foster closer capital-market cooperation, according to Ashley Alder, chairman of the UK's Financial Conduct Authority (FCA).
Alder made these comments in an exclusive interview with the South China Morning Post in Hong Kong on Wednesday, just before departing for Beijing as part of a business delegation accompanying UK Prime Minister Keir Starmer on a four-day visit to China—the first by a British prime minister in eight years.
“We are looking at enhancing market connectivity between China and the UK, particularly by building on the stock connect with Shanghai and Shenzhen,” Alder said. “In addition, we are exploring other areas of cooperation, such as asset management.” He is traveling with UK Treasury minister Lucy Rigby and is set to meet mainland regulators, including the China Securities Regulatory Commission (CSRC) and the National Financial Regulatory Administration (NFRA), to discuss ways to bolster cross-border trading links and regulatory alignment.
Alder spent three decades in Hong Kong, serving as CEO of the Securities and Futures Commission from 2011 to 2022. During that period, he collaborated with mainland authorities on various cross-border market access programs, including connect schemes for stocks, bonds, exchange-traded funds, and wealth-management products.
UK and Chinese authorities are now examining the feasibility of a framework akin to the Greater Bay Area's wealth-management connect scheme, launched in 2021, which would enable mainland investors to access UK-based asset-management and retirement products. This initiative reflects broader efforts to strengthen bilateral financial ties amid ongoing global economic challenges.
