Chinese halt bond sales and pull lucrative deals out of UK over PM’s Brexit dithering
Financiers also admitted a scheme to link the London and Shanghai stock exchanges had lost momentum
THERESA May’s delay dealing with the Brexit vote has sparked anger among Chinese officials, who have pulled the plug on lucrative business deals with the UK.
Far East officials said “enthusiasm” is waning and the “golden age” of Britain-China could now be over, with the country’s government refusing to sell bonds to Westminster this year.
MPs had been hopeful of growing the relationship between the two country’s after a landmark 3billion Renminbi (£350m) trade of the bonds with the Chinese finance ministry last summer.
But the deal has now gone south under PM Theresa May, who also soured the relationship when she went head-to-head with the country over its investment in the £18bn Hinkley nuclear power plant project in Somerset.
Financiers admitted that a scheme to link the London to Shanghai stock exchanges has also lost momentum.
One Chinese official said: “In some areas of our engagement, the Chinese side is taking a more wait-and-see attitude following the Brexit vote.
The “golden era” trade relationship had been an idea launched by former UK Chancellor George Osborne under the leadership of David Cameron.
The official added: “We do not feel the same level of enthusiasm from this government as from the Cameron-Osborne team.”
Chinese observers have also blamed the cool off on China’s own economic problems.
A second Chinese official said: “There is no timetable for a second government bond issuance in London.
“In any case, the next one that China issues overseas will probably go to another centre, with Hong Kong under consideration.
It is only fair that China diversifies its issuance locations for government bonds.”
Relations between the UK government and China also took a hit in September when Theresa May added a string of security conditions following its investment in the £18bn Hinkley nuclear power project in Somerset.