UK treasurer says London 'natural home' for Chinese finance

Beijing: British treasurer Rachel Reeves said Saturday that London was a natural home for Chinese finance as she began a visit to Beijing in the sha...

Beijing: British treasurer Rachel Reeves said Saturday that London was a "natural home" for Chinese finance as she began a visit to Beijing in the shadow of bond market turmoil back home.

Reeves, whose formal title is chancellor of the exchequer, is the most senior British government official to visit China since then-prime minister Theresa May held talks with President Xi Jinping seven years ago.

The trip comes as the yield on British government bonds reached a 17-year high this week, further complicating the ruling Labour Party's sputtering efforts to revitalise growth.

The increase makes it more costly for the government to finance current operations and repay debt, raising risks it will have to make spending cuts or hike taxes.

Speaking at the reopening of long-suspended finance talks between the two countries, Reeves said London was a "natural home for China's financial services firms and your clients raising capital, and a launchpad for Chinese firms seeking to build a global footprint".