CHINESE and British securities regulators are discussing an agreement that will pave the way for landmark financial services projects between the countries, sources said, easing fears that Britain could be a less attractive partner for such deals after last month’s vote to leave the European Union.

    Britain’s Financial Conduct Authority (FCA) and the China Securities Regulatory Commission (CSRC) are cooperating on a regulatory framework for a program for distributing fund products in each other’s jurisdiction and a proposed London-Shanghai link for trading shares, two people with direct knowledge of the matter said.

    Britain, home to the EU’s biggest finance sector, has been pushing in recent years to deepen its financial services ties with China, which has agreed to these and other cross-border financial services schemes as part of the U.K.-China Economic and Financial Dialogue (EFD) program.

    Britain’s former Chancellor George Osborne and Chinese Vice Premier Ma Kai said at last September’s EFD meeting that they would explore the creation of a London-Shanghai equity link and mutual funds recognition program, but neither government has provided further details.

    There are, however, other complications in the economic links between the two countries since the EU vote ended the premiership of Britain’s David Cameron, who along with Osborne had been keen to develop cooperation with China.

    New Prime Minister Theresa May stepped in Friday to delay a planned Chinese investment in a new British nuclear plant to review security concerns, a former colleague and a source said Saturday.

    Vince Cable, business secretary from 2010 to 2015, also told BBC Radio that during Cameron’s tenure May had made “quite clear she was unhappy about the rather gung-ho approach to Chinese investment.”

    Even so, the formal cooperation between the FCA and CSRC signals that the financial projects at least are going ahead, with one source saying the discussions had remained “very positive.” (SD-Agencies)