London's stock still on the rise

Although the days of the British Empire are long gone, the United Kingdom has retained its position as a global center of trade and commerce.

In addition to a stable economic and political environment, extensive transport links and efficient communications infrastructure, the country has stayed on top of a constantly changing world economy through prudent policies, the most significant of which was the government's decision in 1997 that allows the Bank of England to set interest rates independently.

Today, over 400 companies from the United States and Asia have chosen Britain as their European base.

Extensive expertise in research and development, coupled with London's centuries-old competence in financial services, has created an ideal environment for companies with a global vision.

The capital continues to lure local and foreign investment thanks to its attractive policies and regulations set by the London Stock Exchange.

"London is the world's capital market. It offers a unique combination of the highest standards of corporate governance, a professional and sophisticated international investor base and a market environment that is genuinely open," says Clara Furse, CEO of the London Stock Exchange.

The city's success is attributed to an entrepreneurial daring that is best illustrated by the insurance giant Lloyd's of London, which traces its beginnings to a 17th century coffeehouse frequented by ship-owners, merchants, and sailors.

"Lloyd's is a great example of the attractive nature of the City and what we call the 'cluster effect.' Every player in the insurance market can be found within 800 yards of this building," comments Lord Peter Levene, chairman of Lloyd's of London.

The "cluster effect" has spread to several industries in London and has grown increasingly popular among Chinese companies.

In the past five years, trade between China and Britain has doubled. Last year, the London Stock Exchange admitted 48 Chinese companies into its Alternative Investments Market.

"The China-Britain relationship is as good as it has ever been, and we can look forward to this relationship growing and developing, to benefit all parties involved," said Lord Charles David Powell of Bayswater, president of the China-Britain Business Council.

As China develops its economy and infrastructure, Britain stands as a logical partner to aid the country's success. China has welcomed British companies because of their experience and expertise.

(China Daily 08/28/2007 page17)