A new sun is rising in our relationship with our Asian partners. My message to them is clear: whatever you want to do, London can help you do it, writes Alastair King
As the mercury begins to dip, many people will be putting their suitcases into storage for another year. Though the weather may have taken a turn, we should not be gloomy; September presents a fresh start, and a new opportunity to succeed. It is with that in mind that I am getting my suitcase out of the cupboard and embarking on a trip to four of the United Kingdom’s most important partner countries: China, and our partners in the CPTPP, Japan, Singapore and Vietnam.
As Lord Mayor, I act as a global ambassador – or, as I put it, cheerleader-in-chief – for the United Kingdom’s financial and professional services sector. From our world class legal and regulatory framework to our open markets, the City has many strengths; however, we lack confidence in our own abilities. That is why, as part of my mayoral theme, “Growth Unleashed”, I have been jumping on planes, banging on doors and proudly selling the United Kingdom’s incredible offer to the world – and encouraging business leaders to do the same. While the financial and professional services markets in the four countries I am visiting this week are all at very different stages of growth, the City has something to offer them all.
UK is an asset management powerhouse
One of the main objectives for my visit is to promote the United Kingdom’s status as an asset management powerhouse. With a favourable time zone, supportive financial and professional services ecosystem and a diverse talent pool, the United Kingdom is the gateway to global capital. We are the second largest asset management centre in the world, and almost half the assets managed in Britain are managed on behalf of overseas clients. Joined by a delegation of United Kingdom-based asset management companies, I will highlight how these strengths should make the United Kingdom the destination of choice for Asia-based investors. In Japan in particular, the evolution of capital and pensions markets towards private assets offers huge opportunities for United Kingdom-based asset managers.
I will also be advancing discussions around the Mansion House Accord, which will provide co-investment opportunities in British projects alongside United Kingdom pension funds, and de-risk market access for Asia-Pacific headquartered organisations looking to deploy capital into the United Kingdom. Meanwhile, the new concierge service within the Office for Investment, which will be supported by the City Corporation, will support international investors when they do invest here.
London can support its Asian partners
In Japan, I will meet with the governor of Tokyo, governor Koike, to refresh the City’s Memorandum of Understanding with the Tokyo Metropolitan Government, which has had a profound impact on financial and professional services collaboration between our two cities over the last eight years. Reflecting the ever-evolving business and investment landscape and growth across both markets, the revitalised agreement will take our partnership to new heights in key fields such as innovation and sustainable finance.
In Vietnam – one of the fastest growing economies in the Asia-Pacific region – our focus will be on the role the City can play in supporting the development of an international financial centre in Ho Chi Minh City and Danang. I am delighted to be speaking at a conference hosted by the British Embassy in Hanoi to address key challenges and opportunities ahead. Attended by leading City-based financial and professional services firms and Vietnamese policymakers, the event will showcase the United Kingdom’s expertise in capital markets, sustainable finance, legal services and fintech. By helping our Vietnamese partners to write their rule book, we can secure a smoother pathway for British businesses looking to do business with Vietnam in the years ahead.
During a period of international turmoil, the City remains a reliable and attractive global financial centre for investment. Asia is the world’s fastest-growing and most economically dynamic region. At this key juncture, there is a huge opportunity for the United Kingdom to step up as a trusted partner, with trade, investment, ideas and financial and professional services expertise flowing freely between our nations. The nights may be drawing in, but a new sun is rising in our relationship with our Asian partners. My message to them is clear: whatever you want to do, London can help you do it.
Alastair King is Lord Mayor of the City of London