https://www.ft.com/content/07a05ac2-e238-11e7-97e2-916d4fbac0da

David Cameron is to take a leadership role in a $1bn investment fund set up to back China’s Belt and Road infrastructure initiative.

The state-endorsed fund will be led by private institutions in UK and China and employ the former UK prime minister in a leadership role that has yet to be defined.

The fund was announced among a raft of new investment agreements finalised during a two-day visit to Beijing by UK Chancellor Philip Hammond as part of efforts to boost global trade ties before the UK leaves the EU in 2019.

Mr Cameron revealed in September that he had discussed a UK-China fund with vice-premier Ma Kai during a trip to Beijing. Mr Cameron has kept a low profile since leaving office last July following the Brexit vote. He has not taken major commercial or diplomatic roles, instead opting to campaign on Alzheimer’s and chair a commission into the effectiveness of aid spending.

The fund and other investment agreements are intended to kick off what both countries called a new phase in the golden era of UK-China relations.

“The China-UK relationship is one of the most important bilateral relationships in the world,” said Mr Ma, part of reassurances from both sides intended to allay worries that ties between the two counties would diminish once the UK exits the EU in March 2019.

Mr Hammond said the UK had committed to avoiding a cliff edge when it leaves the EU.

“We’re committed as a result of the agreement we’ve made this week to creating an environment which will effectively replicate the current status quo so businesses can continue trading as they do now, borders will operate as they do now, and financial services will carry on conducting business across the board as they do now,” he said.

The UK has been seeking greater engagement with Chinese financial institutions, and among the agreements announced on Saturday was a direct channel for trading China’s renminbi in London’s foreign exchange markets. R5, a London-based fintech firm, will provide the trading platform for Chinese banks. 

There was no word from either side on a launch date for the Shanghai-London Stock Connect. When it was announced in 2015, the connect faced challenges on how to bridge the eight-hour time difference between China and the UK. 

China and the UK had “accelerated final preparation” on the connect, said Mr Hammond, and the two countries would begin feasibility studies by allowing companies in each market to list depositary receipts in each other’s market

The bulk of the trade agreements announced this weekend are pegged to Belt and Road infrastructure, a project to revamp Silk Road commerce between Asia and Europe. UK Export Finance, the export credit agency, will support up to £25bn in BRI projects across Asia.

The UK also unveiled a $50m matching contribution with China for the Asian Infrastructure Investment Bank to expand operations into less developed countries.

The $100bn AIIB was begun in 2015 as China’s equivalent to the World Bank, with the UK as the first western nation to pledge support. 

Mr Hammond announced the appointment of Douglas Flint, the former group chairman of HSBC, as the UK Treasury’s Belt and Road envoy, as well as the establishment of as new UK-led BRI expert board to guide investment.

“China and the UK have a very close fit, where China has huge manufacturing and construction capability and huge pools of capital available,” Mr Hammond said. “Whereas UK has great expertise in project finance and legal skills.”

(http://www.autoadmit.com/thread.php?thread_id=3904060&forum_id=2#35487585)