BRITAIN’S shock vote to leave the European Union could derail a raft of financial services projects agreed between China and the United Kingdom (U.K.), which for years has marketed itself to China as its best economic and financial friend in Europe.

    Friday’s U.K. referendum result also threatens to redefine Britain’s growing financial services relationship with China, which has agreed to a number of joint projects as part of the China-U.K. Economic and Financial Dialogue (EFD) program to deepen economic ties between the two counties, based largely on the U.K.’s membership of the EU.

    Last year, the British Government and China’s Vice Premier Ma Kai announced plans to launch a London-Shanghai equity trading link, a mutual recognition scheme for distributing funds products, cooperation on cross-listing exchange products, measures to “cement” London as a yuan clearing hub, and a commitment on the part of several Chinese financial firms to set up bases in London — in addition to strategic Chinese infrastructure investments.

    The U.K. Treasury said last year’s agreement ushered in a “golden era” for relations between the two countries. But these projects are now in doubt amid uncertainty over the United Kingdom’s future access to the EU single financial market, said sources and consultants.

    “Inward investment by China into the United Kingdom under the dialogue has been focused on infrastructure projects and I wouldn’t expect that should change with Brexit, but on financial services projects with China, that’s at significant risk now,” said Andrew Naylor, a Singapore-based executive director at Cicero Group.

    Asked about the impact of the “Brexit” vote on the EFD during a news briefing in Beijing on Friday, Chinese foreign ministry spokeswoman Hua Chunying said, “I think the relevant countries and their departments need time to have a conscientious study of this new situation.”

    (SD-Agencies)