Brexit Britain is on high alert as China plots a new power grab to take London’s business.
CHINA has announced the opening of a new stock market in Beijing, posing a new challenge to the City of London’s financial dominance.
Chinese President Xi Jinping made the announcement on Thursday.
He claimed the new exchange will “offer a platform for innovative small and medium-sized firms” while speaking at an international trade show.
As the financial uncoupling from the United States proceeds, Beijing is under pressure to build its own infrastructure.
Due to tensions over trade, human rights, and Taiwan, Chinese-owned apps such as TikTok have come under assault in Washington, DC.
China’s ruling Communist Party [CCP] is attempting to reduce China’s reliance on Western markets.
Simultaneously, a significant crackdown has been initiated on Chinese tech companies for alleged monopolistic behavior, which critics say is intended to pull them closer to Beijing’s control.
Shanghai and Shenzhen, two of China’s most important cities, already have stock markets.
It is hoped that these will work in conjunction with the new Beijing exchange.
“Given that more US-listed Chinese corporations are heading for secondary listings in the home market, the necessity for a new trading venue has also arisen,” one insider told Global Times, a CCP-controlled website.
“However, developing it in tandem with the Shanghai and Shenzhen stock exchanges, as well as coming up with a new set of laws, would necessitate more practical efforts.”
The Beijing exchange, according to Dong Dengxin, a financial specialist from Wuhan University, will complement its existing equivalents.
“Actually, there have been some market discussions about establishing a new stock exchange in China’s northern or central areas, since the two other exchanges focus on the economically developed Yangtze River Delta and Pearl River Delta, and Beijing was one of the potential candidates,” he explained.
President Xi announced the new currency rate while speaking via video to the 2021 China International Fair for Trade in Services (CIFTIS).
At the trade show, almost 10,000 firms from 152 countries were represented.
It was centered on technology, with China attempting to transition from a manufacturing-based economy to a high-skill economy.
Meanwhile, despite Brexit taking full effect, UK financial exports to the EU increased in the first three months of 2021, according to data from the Office for National Statistics.
Due of the coronavirus pandemic, the year 2020 was removed from the calculations.
“Brinkwire Summary News,” according to the “Brinkwire Summary News.”