85/97                                        21 July 1997   
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            UK OFFERS INTERNATIONAL ROLE MODEL 
                FOR FINANCIAL REGULATION 
                                

The UK commitment to effective international regulatory
cooperation and better international business and
trading links, particularly with major developing
economies such as China, was emphasised by Economic
Secretary Helen Liddell today. 

Meeting representatives of the Chinese Government,
financial regulators, business and financial
institutions visiting the Treasury during a regulatory
familiarisation programme visit, Mrs Liddell commented:

     "The UK financial services industry is immensely
     important. The City of London is a unique asset. We
     all want it to prosper. 

     "London's strengths as an international financial
     centre are due to a regulatory environment in which
     firms and investors can do business with
     confidence. UK financial markets are the most open
     in the world. Overseas firms and investment
     exchanges are warmly welcomed here.

     "We intend to ensure a regulator fit for the 21st 
     century - a world leading regulator. We are putting
     in place a policy framework to support the future
     development of the industry and of the economy, and
     to encourage more overseas companies to invest
     here. This will be a role model for financial
     institutions and regulators around the world.

     "I am pleased to welcome visitors from across the
     Chinese financial and business community to  London
     to see how we  intend to achieve that and the
     progress already underway.

     "We are building on good economic and financial
     relations with China. The Chancellor's Scheme for
     China will enable up to 100 financial services
     executives from China to receive first hand
     experience in UK firms, and agreement on a joint
     Financial Dialogue  will  be on the agenda when he 
     meets the Chinese Minister of Finance later this
     year. 

     "As well as better training and communication,
     countries wishing to participate in growing
     international markets must continue to take
     practical steps to protect investors and
     businesses. We must tackle problems of cross-border
     fraud and market abuse, and reduce opportunities to
     exploit national boundaries and differing legal
     systems. I am delighted that China is now a member
     of the International Organisation of Security
     Commissions (IOSCO), playing a full and active role
     in keeping with her rapidly expanding financial
     markets.

     "Last year the UK Treasury, Security and
     Investments Board (SIB) and the China Securities
     Regulatory Commission agreed a Memorandum of
     Understanding to exchange regulatory information
     and pave the way for Chinese firms to list on the
     London Stock Exchange. This was China's first
     cooperation agreement with a European country and 
     is already bearing fruit, with two Chinese
     companies already listed here. I hope more will
     join them and come to London to raise capital.   

     "London offers a wide range of experience in
     issuing equity and in advising on models for
     public-private partnerships.Privatisation was not
     an easy step for the UK to take and it will not be
     easy for China. But it is a necessary one. Handled
     properly and with the right advice correctly
     applied, it can bring benefits to consumers through
     better and cheaper services; give companies freedom
     to plan and invest; and enable Government to
     concentrate on other priorities.   

     "Today's meeting is a further practical step
     towards achieving our joint goals of shared
     regulatory values put into practice through
     effective financial institutions, and  increasing
     mutually prosperous and rewarding relations between
     our markets and the companies which form them. It
     is very welcome." 



NOTES TO EDITORS

1.   The Chancellor's Scheme for China was announced by
     the then Chancellor when he visited China in March
     and was welcomed by Chinese leaders. It offers a
     secondment to bring Chinese financial high-flyers
     to gain work experience in the City of London.It
     will be tailored tomeet the needs of China's
     financial community and will bring up to 100
     secondees to London. Both countries will benefit
     from greater understanding and knowledge of each
     other's financial markets, forging strong links for
     the future. 

2.   The UK-China Financial Dialogue also agreed in
     principle during the March visit will provide a
     high level forum to discuss international economic
     and financial issues of mutual interest. Such
     arrangements already exist with major G7 partners. 

3.   The Memorandum of Understanding between HM
     Treasury, the SIB and the China Securities
     Regulatory Commission was signed in October 1996.
     It provides for mutual assistance and the exchange
     of information in securities and futures matters.
     It also enables Chinese companies to be listed on
     the LondonStock Exchange. 

4.   The first two Chinese companies to receive full
     listing on the London Stock Exchange are Beijing
     Datang Power Generation Co. Ltd. and Jiangxi Copper
     Co. Ltd

5.   Copies of Mrs Liddell's speech are available from
     the Treasury Press Office on 0171 270 5185.

6.   If you have access to the Internet you can find
     this news release at http://www.hm-treasury.gov.uk.
     Other Treasury material can also be found at this
     address.