UK, China move to deepen market ties with new wealth management link

The United Kingdom and China are exploring a new cross-border wealth management link alongside upgrades to existing stock connect schemes, as both nations seek to deepen capital market cooperation.

Ashley Alder, Chair of the UK Financial Conduct Authority (FCA), confirmed the discussions, stating, “We are looking at strengthening the market connection between China and the UK, specifically building on the stock connect with Shanghai and Shenzhen.” He added that the two sides are also “exploring other areas of cooperation, such as wealth management.”

Alder made the remarks during an interview with the SCMP in Hong Kong, prior to traveling to Beijing as part of Prime Minister Keir Starmer’s four-day visit to China. The trip marks the first visit by a British Prime Minister to the country in eight years.

Alder is traveling alongside UK Chancellor Lucy Rigby and is scheduled to hold meetings with mainland regulators, including the China Securities Regulatory Commission (CSRC) and the National Financial Regulatory Administration (NFRA), to bolster cross-border trade links and regulatory cooperation.

The FCA chair brings significant regional experience to the role, having spent thirty years in Hong Kong, including a tenure as CEO of the Securities and Futures Commission (SFC) from 2011 to 2022. During that period, he collaborated with mainland authorities on several landmark market access programs, including connect schemes for stocks, bonds, exchange-traded funds, and wealth management products.

Alder noted that British and Chinese officials are currently examining whether a framework can be established similar to the Wealth Management Connect scheme launched in the Greater Bay Area in 2021. Such a system would allow mainland investors to access UK-based wealth management and pension products.

“This scheme would benefit both mainland China and the UK by providing wealth management products for investors looking to convert savings into investments and diversify their portfolios,” Alder said. He further emphasized that the UK is the world’s second-largest wealth management center and that “both countries are facing aging populations and increasing pension needs.”

Discussions are also underway to refine the London-Shanghai and London-Shenzhen stock connect regimes, which were launched in 2019 to facilitate cross-border listings. Currently, six mainland companies are listed on the London Stock Exchange under this program, with a combined market capitalization of approximately £6 billion ($8.28 billion). However, no London-listed companies have yet joined the mainland portion of the program.

The six mainland firms currently listed in London include Huatai Securities, China Pacific Insurance, China Yangtze Power, SDIC Power Holdings, Ming Yang Smart Energy Group, and Zhejiang Yongtai Technology.

“We want to take measures to increase the number of shares in this program and attract more trading,” Alder stated. “By strengthening the stock connect between London and Shanghai, we aim to improve its design and resolve technical hurdles, thereby giving companies greater incentives to utilize it.”

Alder also revealed that the FCA is working with the NFRA on cross-border data-sharing protocols to support audit and enforcement cooperation.

“Many mainland companies are eager to use the UK as a second global stepping stone after Hong Kong,” Alder noted. “At the same time, major UK-based institutions are extremely active in China, so there is a clear demand for structured regulatory data exchange.”

Furthermore, Alder pointed out that mainland banks and securities firms—such as the Bank of China and Industrial Bank of China, as well as mainland brokers like Haitong International—already maintain a significant presence in the UK, serving both Asian and local clients.

Alder expressed hope that more Hong Kong and mainland companies would pursue secondary listings in London, following the recent move by CK Infrastructure Holdings.

“London possesses a very important group of institutional investors who do not invest here or in Hong Kong,” he said. “A secondary listing in London for Hong Kong-listed companies is not about competing with Hong Kong; it is about adding value by expanding the investor base.”