When you mention the UK, what is the first thing you think of? Some keywords will immediately appear in most people's minds: English, Queen, Football, British drama, British literature , and even be shaped into those people we are familiar with since childhood, such as Shakespeare , Dickens, Charlotte Bronte , Agatha Christie, Nolan, Harry Potter, J.K. Rowling ...
As the birthplace of Industrial Revolution , Britain not only has a profound cultural heritage, but also a leader in modern natural sciences, and is also the cradle of the Western parliamentary system. It has had a profound impact on the world today and has also made outstanding contributions to the progress of human civilization.
In recent years, Sino-UK economic and trade cooperation has been deepened. According to statistics from China Customs, despite the impact of the global COVID-19, resulting in a sharp decline in trade, China-UK goods trade still hit a new high in 2020, reaching US$92.3 billion, a 7% increase against the trend, ranking second in the trade volume between my country and European countries. The stable development of Sino-UK economic and trade cooperation provides a good environment for Chinese investors to invest in the UK. In 2015, China and the UK decided to jointly build a global strategic partnership for the 21st century. The enterprises of the two sides signed more than 30 economic and trade agreements, with a total amount of approximately 40 billion pounds.
" Shanghai-London Connect " launched in mid-2019 - a mechanism for interconnection between Shanghai Stock Exchange and London Stock Exchange . Listed companies in both places that meet the conditions can issue depositary receipt (DR) and list and trade in the other party's market, which also makes London the next preferred destination for Chinese companies to consider overseas listing.
In June 2019, Huatai Securities was officially listed on the London Stock Exchange, becoming the first Chinese company to list on the London Stock Exchange through the Shanghai-London Stock Connect mechanism. As of Q2 2021, four Chinese companies, including Huatai Securities, China Pacific Insurance Group , Yangtze River Power and Guotou Power , issued international depositary receipts (GDRs) in the UK through the Shanghai-London Stock Connect, with a total fundraising scale of US$5.37 billion.
According to data disclosed by the Ministry of Commerce, as of the end of 2020, China's direct investment stock in the UK was US$17.6 billion, ranking second among European countries.
At present, the UK has become one of the main destinations for overseas investment by Chinese enterprises. More than 800 Chinese enterprises have invested and started businesses in the UK. Investment projects are spread across the British Isles. The investment field is extending from traditional industries such as finance, trade, and energy to high-end manufacturing, infrastructure, cultural creativity, information technology and other fields. The economic and trade cooperation between the two countries is developing towards in-depth, diversified and refined directions.
has a complete financial system, providing diversified financing and exit channels
As the world's oldest financial capital, an important pillar industry of the British economy is the financial services industry. The UK's financial services industry includes banking, insurance, investment management, stock market, foreign exchange market, futures market, etc.
London is the world's main foreign exchange trading market , with daily trading volume of more than 500 billion US dollars, accounting for 30% of the global trading volume. London is the world's largest over-the-counter financial derivatives trading market. After , Chicago , it has become the world's second largest futures and options trading market and the world's largest fund management center.
The perfect financial system and developed financial market not only meet the diversified financing needs of enterprises at different stages and natures, but also meet the investment needs of different risk preferences and different investment goals, providing diversified exit channels for funds investing in British companies.
London Stock Exchange is one of the oldest exchanges in the world and one of the largest comprehensive exchanges in the world. Its business scope covers listing transaction services, post-trading services, information services, technical services, etc., with a complete business chain, active market operation and excellent operating performance.
As of March 2021, there were 1,988 listed companies, from nearly 60 countries and regions, with a total market value of approximately 3.67 trillion pounds. More than 550 foreign banks and 170 global securities companies have offices in London to provide professional services to issuers.
London Stock Exchange Primary Market (Primary Market) meets the financing needs of companies in different industries and sizes around the world by building a multi-level market.Judging from the listing rules, compared with other countries and regions, the London Stock Exchange is relatively loose and has no profit requirements for listing, but it has set clear requirements in terms of public holdings, equity dispersion, information disclosure, etc., which facilitates corporate financing. Moreover, on the premise of maintaining the consistency of the overall market trading system, the London Stock Exchange has introduced a differentiated trading mechanism in various markets, further improving market efficiency.
As the flagship market of the London Stock Exchange, Main Market is one of the best markets with liquidity and market depth in Europe. It follows globally recognized regulatory and corporate governance standards, mainly with large and mature companies. The main board market is divided into three sub-markets:
- Premium Segment—Serves the world's leading large companies and follows the highest standards of regulatory and governance requirements;
- Standard Segment—Provides financing services for stocks, GDRs, and bond issuers, complies with EU minimum regulatory standards;
- High Growth Segment—Paving the way for growth companies to enter high-level sub-markets.
In addition to the main board market, the London Stock Exchange has the following four types of markets:
1 is the Alternative Investment Market (AIM market for short) - belongs to the London Stock Exchange GEM . It mainly serves start-ups in the starting period and VC investment to relatively complete enterprises, mainly meeting the financing needs of small and medium-sized and growth-oriented enterprises, and the listing conditions are looser than those on the main board.
Second, Professional Securities Market (PSM) - Listed categories include depositary receipts (DRs) and bonds and other non-stock financing tools , which is only for professional investors or institutional investors;
Third, Specialist Fund Market or Specialist Fund Segment, SFM) - Provides listing channels for professional fund issuers, and serves mainly professional institutional investors, and the target customers are mainly large hedge funds , private equity funds, and some emerging markets and professional real estate funds;
Fourth, Admission To Trading Only Sub-market (ATT for short) Only) - mainly serves two types of enterprises: one is the company that expects to be listed on the London Stock Exchange in the future, but does not meet the conditions for listing in other sectors at this stage, such as companies that are undergoing restructuring, ATT Only becomes the reserve market for such enterprises before listing in other major markets; the other is the company that is subject to the laws of the country where the enterprise is located or the company's own wishes and cannot or is unwilling to officially list on the London Stock Exchange.
In order to serve startups in multiple ways, since 2014, the London Stock Exchange has set up Elite Project (Elite) - mainly providing comprehensive cultivation services for start-ups. Five years later, it launched the Scottish Elite Project and the American Elite Project. As of the end of 2019, the Elite Project has covered 1,400 companies in 45 countries.
post-trading service and risk management services are also important services for the operation of the London Stock Exchange. Through the London Clearing House, the Italian post-trading service department CCG and Monte Titoli, and UnaVista, a transaction reporting and reconciliation business belonging to the information service department before 2019, it mainly provides clearing services for multiple markets including over-the-counter trading , interest rate products, fixed income, foreign exchange, CDS, stocks and commodities.
In recent years, the British government has also significantly increased its support for high-tech industries, especially green energy and sustainable development. For example, the British government has increased its investment in technology to nearly 30 billion US dollars every year, and will establish a "technology power" as its top priority.
In terms of energy, the UK attaches great importance to emission reduction and green development, and the clean energy and environmental protection industries are developed and the technical content is high. In November 2020, British Prime Minister Boris Johnson announced the "Green Industrial Revolution" development plan, covering clean energy, transportation, nature and innovative technology and will use more than 12 billion pounds of government funds to support and create up to 250,000 high-skilled green jobs nationwide.
The plan includes ten contents: offshore wind energy, hydrogen energy , nuclear energy, electric vehicles , public transportation, green shipping, residential and public buildings, carbon capture, natural environment protection, and innovative finance.According to the latest energy industry data released by the UK Department of Business, Energy and Industry Strategy (BEIS), the UK's renewable energy power generation in 2019 was 119TWh, an increase of 8.5% year-on-year, accounting for 36.9% of UK's power generation.
In the field of green energy investment, the British government has used public funds to drive private capital to invest in the green field. The British Department of Business, Energy and Industry Strategy (BEIS) has created a £20 million clean growth venture capital fund and studied the creation of a £315 million energy transformation fund (later officially established in 2019) to support the development of new technologies that provide energy utilization efficiency . The government and private institutions jointly invested £400 million to create a charging infrastructure investment fund to encourage the development of electric vehicles.
China and the UK are also close partners in green investment. After China and the UK signed the "China-UK Clean Energy Partnership Implementation Action Plan" in 2017, during the 10th China-UK Economic and Financial Dialogue in 2019, China and the UK reiterated that they recognized each other as their main partners in the field of green finance.
In March 2018, China Resources Power completed the investment and delivery of 550 million pounds of offshore wind power project in the UK (the sixth largest offshore wind farm in the world). After the delivery is completed, CR Power will own 30% of the equity of the project.
In July 2019, the Beatrice offshore wind power project in Scotland, which participated in investment (total investment of approximately 2.6 billion pounds), was officially put into production. After it is put into production, it will provide clean energy for 450,000 local households.
talents provide a reserve force for the development of science and technology business
UK is one of the important R&D bases of the world's high-tech and high-value-added industries. With 1% of the world's population, it is engaged in 5% of the world's scientific research. So far, more than 90 Nobel Prize winners in science have emerged, ranking second in the world. It has strong competitiveness in biopharmaceuticals, aviation, automotive engines and defense industries.
All this mainly stems from the British government's emphasis on education and scientific research. Compulsory education system for 5-16 years is implemented in England, Wales and Scotland, and compulsory education system for 4-16 years is implemented in Northern Ireland. Public school students are exempt from tuition fees, accounting for about 94% of the total number of students.
The UK has many well-known universities around the world, such as Oxford University , Cambridge University , Imperial College , London School of Economics , etc. According to the 2020 Times Higher Education World University Rankings, the University of Oxford, Cambridge and Imperial University of Technology in the UK ranked in the top 10 in the world, and a total of 10 universities in the UK entered the top 100 in the world. In the Global Talent Competitiveness Index (GTCI), it ranks second in the G20 (G20) in terms of talent growth potential and competitiveness in attracting talents.
On the one hand, in order to attract overseas capital to invest in the UK, the British government issued a new entrepreneurial visa Start-up visa and an Innovator visa in April 2019, replacing the previous T1 Entrepreneur entrepreneur visa. Among them, Innovator visa can obtain permanent residence for 3 years, and after certain conditions are met, permanent residence can apply for British nationality. This move has undoubtedly attracted entrepreneurs from all over the world to invest in the UK.
On the other hand, in order to attract global talents to study, work and live in the UK, in 2020, the UK launched a fast visa program for global talents Global Talent, with no upper limit on the number of talents to the UK to attract world's top talents. For companies that recruit globally, this program is a powerful advantage in helping companies attract global talents.
The UK's superior geographical location, open trading system, complete infrastructure, sufficient energy and high-quality scientific research resources make the UK have great advantages in scientific and technological innovation, production and trade. The UK is extremely competitive in many fields. In addition to the financial industry, tourism industry, energy industry, automobile manufacturing industry, and creative industry that we are familiar with, high-tech industries such as aerospace industry, chemical and pharmaceutical industry, information and communication industry, and life science industry are also extremely advantageous.
21 list of UK companies that ranked among the top 500 in the world (unit: million US dollars), source: US Fortune magazine
According to the global immigration data released by United Nations , the UK has been one of the most popular immigration destinations for many years and has become a major emerging immigration country. The superior business environment, relaxed entrepreneurial conditions, a perfect financial system and a high-quality educational environment undoubtedly provide prerequisites for the UK to attract global talents, all of which provide a solid foundation for the future development of technology and innovation in the UK.
The long-standing and inclusive entrepreneurial soil in the business environment
On the last weekend of August every year, the largest street culture and art festival in Europe - Notting Hill Carnival is held in Notting Hill West End, London, England. The Carnival originated in 1964 and is themed on the theme of African and Caribbean culture. It is one of the symbols of British multiculturalism and fully demonstrates the multicultural tradition.
UK Multiculturalism has begun since World War II ended. At that time, a large number of ethnic minorities flocked to the UK. In order to ease racial conflicts and maintain social security, the British government has introduced a series of anti-racial discrimination bills, requiring an inclusive attitude towards ethnic minorities, and multiculturalism has since kicked off in the UK. With its development to this day, Britain has long become a society that combines tradition and inclusiveness and diversity. Behind the diversity of culture, it also provides fertile soil for Britain's business, culture and economy.
In 2019, World Bank rated the UK as one of the top ten economies in Europe with the most friendly business environment. Among them, the UK is the world's first in "soft power" and the global financial center. The UK has many advantages in the country's property rights, innovation environment, tax system, technology, labor, investment protection and quality of life.
According to the report of the International Taxation Department of the State Administration of Taxation, the UK is one of the most attractive countries in the world with many unique advantages, such as: obvious economic development advantages and one of the most convenient countries in Europe for business; low tax rates; flexible labor market; few obstacles to investment and entrepreneurship, etc. The above favorable conditions greatly enhance the UK's attractiveness to foreign investment. Specifically, it is:
First of all, the UK is one of the major economies in the world, with an open economic system, a highly mature legal system, and a sound legal system, with high economic vitality, and huge domestic consumption potential and market size. Moreover, its digital management and service level are also at a high level.
UK government services are transparent and have a high level of digital management. Policy documents that are not confidential can basically be obtained on government websites. Most business affairs such as registering enterprises and applying for various licenses can also be completed on government websites.
Secondly, the tax rate is lower. Since April 2017, the UK has lowered its corporate income tax to 19%, becoming one of the countries with the lowest tax rate among developed countries. In terms of foreign exchange control, the UK abolished the foreign exchange control system in the late 1970s, and there was no limit on the remittance of company profits. In the face of capital flows, the UK gives complete freedom without any authorization.
Once again, the UK's venture capital and technology entrepreneurship activity have always been among the forefront of the world. At present, London, England has become the third largest technology entrepreneurship ecosystem in the world and the largest European technology entrepreneurship ecosystem after Silicon Valley and New York, with the output value of the entire ecosystem as high as US$44 billion. The UK ranks in the top five in the 2019 Global Innovation Index.
In terms of venture capital funds, 7 of the top 10 venture capital investors in Europe are headquartered in London. The main reason for attracting venture capital to settle in London is that there are more and more science and technology companies in London.
According to StartUp UK data, since 2010, the number of registered startups in the UK has hit new highs. From 2006 to 2017, London tech companies increased by 89%, and employment increased by 72%. As of March 2020, London has a total of 47,000 technology companies, contributing 242,000 jobs.
Finally, the British government strongly supports innovation and entrepreneurship: OECD statistics show that the UK has the fewest obstacles to entrepreneurship in the world, and the British government actively supports innovation and entrepreneurship. The UK is one of the most active countries in the world with innovative enterprises.
In 2010, the British government issued a plan for the development of "Mini Silicon Valley" to build East London into a high-tech industrial center and named it "East London Science and Technology City". The government has introduced various measures to attract giants to settle in and entrepreneurs gather.
In 2018, the UK Research and Innovation Agency (UKRI) was established. As a "non-sectoral public organization" created by the British government, UKRI is responsible for allocating funds and leading the UK's work in the field of scientific research and innovation, providing impetus for the country's future scientific discoveries and economic growth.
In order to support entrepreneurs and encourage young people to start businesses, the British government launched the "Loan Guarantee Program" - the government guarantees small businesses, and the government provides loan guarantees to lenders (usually banks and other financial organizations).
As of March 2020, the plan has issued RMB 11 billion in loans, supporting more than 100,000 startups. In the UK, entrepreneurs only need 135 RMB to register a company.
During the epidemic, the UK launched the Future Fund program with a total amount of 500 million pounds to provide financial support to high-growth innovative enterprises affected by the epidemic. In addition, the UK Ministry of Finance also provided cash subsidies and loans for R&D small and medium-sized enterprises with a total amount of 750 million pounds.
The above favorable conditions greatly enhance the UK's attractiveness to foreign investment. World Economic Forum "2019 Global Competitiveness Report" shows that the UK ranks 9th among the 141 most competitive countries and regions in the world. The "
At present, the political situation in the UK has returned to stability, and it continues to be favored by global investors due to its developed economic conditions, complete legal system, mature business environment, open market system, and innovative vitality in emerging fields. According to IMF data, the total amount of GDP in the UK in 2020 was US$2.71 trillion, making it the fifth largest economy in the world.
In 2021, the British government implemented a number of measures to promote the recovery and development of the UK economy. These include:
First, it has signed trade agreements with nearly 70 countries, and is negotiating trade agreements with the United States, Australia, New Zealand and other countries, and has officially applied to join the " Comprehensive and Progressive Trans-Pacific Partnership Agreement " (CPTPP);
second, it implements a new tariff system, and implements a new most-favored-nation tariff system from January 2021, streamlining the tax items based on the current EU tax system and reducing the tax rate;
third, it restarts the construction of free port , exempting free ports Taxes such as tariffs provide tax incentives in terms of capital investment and R&D, upgrade the infrastructure of free ports and surrounding areas to promote the formation of industrial agglomeration, and currently the first batch of eight free ports have been identified in England;
4 is to vigorously develop digital economy , accelerate the deployment of 5G and high-speed fiber optic networks, release the "Ten Technology Development Directions" of the digital strategy, and draw the technical and policy route of the UK's digital economy;
5 is to accelerate the promotion of green development and announce the "Ten Points Plan for the Green Industrial Revolution", which will promote the realization of the statutory goal of net zero emissions in 2050 and the green transformation of the economy.
At the same time, the UK is also strengthening national security review for foreign investment and mergers and acquisitions. On April 29, 2021, the National Security and Investment Act 2021 was approved by the British Royal Family and officially became a law, giving the British government more power to review foreign investment mergers and acquisitions.
According to the 13th issue of "BestCountries for Business" released by Forbes in 2019, the UK ranked first for the second consecutive year, and was elected the world's number one, while the United States fell sharply, falling to 17th place in the world.
The business environment in the UK is mature and the legal system is complete. London is also a world-renowned financial center and an important foreign exchange trading, securities trading and financial derivatives trading market in the world. Its technological status in Europe and even the world has been increasing, and has become the second largest global technology center with the fastest growth since 2016. According to research by entrepreneurial services consulting firm Dealroom.co and the London Development Promotion Agency, European technology companies raised $43.1 billion in 2020, of which London was $10.5 billion, accounting for one-quarter, reaching an all-time high.
The UK's commercial service industry is developed and can provide enterprises with world-class tax, accounting, audit, consulting, marketing and other services. In the long run, China and the UK still have the objective conditions for resource cooperation and complementary advantages, and bilateral economic and trade development still has great potential, especially in areas such as jointly responding to climate change and promoting green development.
In recent years, the Chinese government has also encouraged Chinese companies to go global. In 2020, China's foreign direct investment reached US$153.71 billion, ranking first in the world for the first time, and its influence in global direct investment has continued to expand.
The world is currently in a period of great change, great development and great adjustment. Global economicization continues to move forward in twists and turns. A new round of scientific and technological revolution and industrial changes are gradually affecting the direction of the global economy. At the policy level, the government has always encouraged enterprises and investors to make reasonable and effective use of overseas market resources, develop foreign investment cooperation, continuously integrate into the global industrial chain and supply chain, and inject vitality into the global economic recovery.
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