City can provide help to initiative, says financial hub's new appointee

The City of London Corp's new policy chief, Catherine McGuinness, says she wants the capital's financial services companies to engage more with the Belt and Road Initiative, so the business district can maintain its financial strength amid Brexit uncertainties.

The City of London Corp is the municipal governing body of the City of London, the historic center of London and the location of much of the UK's financial sector. The city's broader London local government is run by the Greater London Authority.

"London would be able to help with the huge complexity of financing projects along those routes - each country and each project would bring its own risks and complexities," McGuinness told China Daily.

She says the City of London could provide invaluable help, given its expertise in project finance, green finance, insurance, financial product structuring and legal services, as well as the United Kingdom's historic familiarity with countries from Asia to Europe in the region covered by the Belt and Road Initiative.

McGuinness, who is a financial lawyer, stepped into her new role this month. Just before that, she visited Hong Kong and Shenzhen to discuss Belt and Road cooperation with government and private-sector representatives.

She says engaging with China has significance, with London currently dealing with the stress of Brexit. According to research by the law firm Freshfields that was published in May, City of London banks could move at least 9,000 jobs abroad as a result of Brexit.

McGuiness highlighted three goals for her team: ensuring continued access to European markets, creating clarity and stability in the Brexit transition and ensuring continued access to skilled and trained staff. But she concedes that Brexit has prompted London to look farther afield for opportunities.

As far as relations with China are concerned, her predecessor, Mark Boleat, had a high profile. During Boleat's five years in the post, several Chinese banks gained London branch licenses, London established an official renminbi clearing bank, and a currency swap line between China and the UK's central bank was established.

Those initiatives all turned London into a leading offshore renminbi hub. In the first three months of this year, 36.3 percent of global offshore renminbi exchange transactions were conducted through London, which put the UK capital in the top spot for offshore renminbi foreign exchange transactions.

Asked what her China-related legacy would be, McGuinness says she would like it to be Belt and Road engagement.

"It's a very visionary project, something we feel we are natural partners to take forward," she says.

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(China Daily European Weekly 05/26/2017 page29)