CRI听力:China, UK Pledge to Expand Financial Ties

China and Britain have announced plans aimed at making London the main centre for Chinese financial business overseas.

China will give London-based investors the right to buy up to 80 billion yuan, or 13 billion US dollars worth of mainland stocks, bonds and money market instruments.

George Osborne says he will loosen regulations to allow the move.

"The internationalization of the renminbi (RMB), the use of London as the pre-eminent centre outside of China and Hong Kong for that business is a huge boon for British financial services for Britain as a centre of global finance and that is something which of course is all about involvement in the Chinese economy."

The agreement, announced by Britain and China in a joint statement on Tuesday, falls under the Renminbi Qualified Foreign Institutional Investor plan, or the RQFII.

This is the first time the RQFII has expanded outside of Hong Kong to give investors more avenues to invest yuan and more incentives to hold the currency.

In return, the British government has agreed to start talks to allow Chinese banks to set up wholesale units in the United Kingdom.

Under the agreement, London and Beijing will also allow for the yuan to be traded against sterling directly, as opposed to going through the dollar, thereby markedly reducing transaction costs.

At the same time, China and the UK have signed an agreement on civil nuclear cooperation.

Under the deal, the Chinese General Nuclear Power Group is expected to team up with France's EDF for a new plant in Britain.

Chinese Vice Premier Ma Kai:

"China is now actively promoting reforms and opening up in the financial sector. We are pushing forward market-oriented exchange rate and interest rate reforms, as well as changes in capital account convertibility. We have lowered the criteria set for capitals entering the financial sector. It will bring new opportunities to help UK firms open up business here in China."

Ma also says China hopes bilateral trade with the UK can reach a target of 100-billion-US dollars by 2015.

Earlier, Osborne announced the UK would simplify visa application rules for Chinese visitors.

The deals come against the backdrop of a volatile world economic outlook as London is pushing to place the British economy on a firmer footing.

The annual dialogue between China and UK was initiated in 2008.

For CRI, I'm Su Yi.