British financial regulator: China crucial to world's recovery

BEIJING, June 18 -- London and Beijing should work closely together as the
world fights its way out of the economic downturn, said the UK's top financial
regulator.







Chinese Vice Premier Wang Qishan (R)
meets with Adair Turner, chairman of the Financial Services Authority of
Britain, in Beijing, capital of China, on June 17, 2009. (Xinhua/Huang
Jingwen)
Photo
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Adair Turner, chairman of the UK's Financial Services Authority, told China
Daily that China and the UK should help list companies on each other's stock
markets.

"Britain would see it more likely to have Chinese companies listed in
London over time, as the mutual financial cooperation enables companies to build
a global profile," Turner said.

And he said China's role in the recovery will be crucial.

"It is very important, after the huge financial crisis, that we build up as
much cooperation as possible between regulatory authorities across the world,"
he said. "It is important that we learn lessons from each other about the way we
regulate our banking systems and discuss common approaches to regulation,
because some of these approaches are based on a common global basis."

Additional cooperation with China is particularly significant, he said,
because China recently became a member of the global Financial Stability Board
(FSB) - the body the G20 hopes will better regulate the global financial system.


China will attend the board's first meeting in Basel, Switzerland, next
week.

Turner, who is on a visit to China, said the world is recovering gradually
from the crisis and the next steps will be very important.

"Part of the purpose of my three-day visit here is to build links with
people who will be my colleagues on the FSB board," he said.

China's financial system has not been hit as hard as many around the world
because China is only partially integrated into the global financial system.
However, the Chinese economy has suffered major shock and its growth rate was
significantly reduced, Turner noted, pointing out that China's exports were down
26 percent in February compared to the same period last year.

Noting China's banks have a low profile overseas, Turner speculated the
nation's opening-up will evolve to the point where its banks become "more
global".

He said the severity of the crisis in Europe led people there to realize
greater integration is needed.

"We would need some sort of European financial supervisory authority, as we
are facing particular challenges from Eastern Europe," he said.

In Europe, he said, individual banks have found themselves stretched after
extending credit, while some countries have struggled after unsuccessfully
trying to peg exchange rates to the euro.

Former International Monetary Fund head Jacques de Larosiere has called for
a regulatory authority in Europe and the European Commission is moving the idea
through the European Parliament.

"We hope for, and are going to see, a much increased degree of European
coordination and much closer working links between supervisors across Europe
after experiencing the crisis," he said. "Generally, there is no quick recovery
but there will be a gradual recovery based on a sound global financial
system."

(Source: China Daily)