China UK Trade Visit Could Mean a 18 Billion Pound in New Deals

China will deepen its investment in the UK, with around £18bn of deals expected to be signed during a three-day visit by the premier, Li Keqiang, starting on Monday.

The visit, involving 200 Chinese business leaders, is also expected to shed more light on its involvement in the UK’s first new nuclear power station in a generation, at Hinkley Point in Somerset. China National Nuclear Corporation (CNNC) and China General Nuclear Power Corporation (CGN) have already agreed in principle to be minority shareholders in the £16bn project.

With deals expected to focus on energy and nuclear power, Li’s visit underscores how the nature of Chinese infrastructure investment has changed. Early Chinese infrastructure investors focused on utilities, such as water companies and airports, companies with predictable revenue streams and reliable returns.

Graham Matthews, a partner in Deloitte’s China services group, said the nation was moving beyond “pure financial play”, into new-build investments, where its “world-leading expertise” in areas such as high-speed rail made it an attractive partner for the UK.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza