Hello, everyone.
May I say what a pleasure it is to join you for the Second Bund Summit and pass on my best wishes to you all from London.
Thank you to the organising committee and Mr. Tu for this invitation.
For all of us around the globe, this year has been a challenging one.
The ongoing Covid-19 pandemic has dramatically changed the working practices of thousands of institutions and we are all continuing to adjust to what many call, “the new normal”.
As we begin to look to the future, the financial sector is under increasing pressure to play an essential role in the post-Covid recovery.
As the world’s leading financial centre, the City of London recognises its responsibilities for supporting that recovery globally.
As such, much of our work in the City has become increasingly purpose-led and a force for good, directing capital to socially and environmentally responsible projects and boosting economic growth across the world.
In particular, we are leading the way in areas such as innovation, sustainability and openness in the financial services sector, ensuring that we do not just build back our economy post-Covid, but build it back better.
Testament to London’s position as the world’s leading financial centre has been the resilience of our markets.
Despite the difficulties presented by the global pandemic, London’s markets have remained open.
And it has been remarkable to see the public equity markets mobilising capital rapidly and at scale for the institutions that really need it.
Capital has been made available across asset classes from national governments and early-stage biotechnology businesses, to multilateral development banks and pub chains.
This has demonstrated the resilience of London’s financial services infrastructure and the strength of its talent.
Earlier this week, we have published a report named London Recharged.
The report finds that business remains committed to central London and recognises the value of working alongside customers, clients and competitors.
Nonetheless, investment in skills, digital infrastructure and sustainable environment will be needed to ensure London remains the global centre of choice.
In the City, we have also continued to strengthen our work in FinTech.
We are currently leading an independent review of the UK fintech industry, working alongside HM Treasury and Innovate Finance.
It will establish priority areas for industry, policy makers, and regulators to best support the ongoing success of the UK fintech sector.
Alongside this, we have teamed up with the Financial Conduct Authority to create a digital sandbox inspired by the challenges posed by Covid-19.
The Digital Sandbox Pilot is now live and open for application for innovation firms to use the sandbox to develop, test and validate their innovation.
We will be focusing on 3 themes: fraud, vulnerable consumers, and SME access to finance.
The pilot will evaluate the effect that offering certain assistance to innovative firms, such as access to data sets, has on enabling new ideas to get to market more quickly, as well as the associated benefits for regulators and incumbent firms.
Initiatives like the ‘regulatory sandbox’ and ‘digital sandbox’ help businesses introduce and test new financial projects and distribution methods in a safe and secure manner.
And I am pleased to say that this support is also offered to overseas innovative firms to help facilitate their entry to the UK.
Beyond FinTech, London’s markets have also continued to focus on – and lead in – the provision of sustainable and impact finance.
Through the use of social and sustainability bonds, we have been ensuring funding to countries, sectors and people across the world who are being heavily impacted by this pandemic.
With respect to green finance, the UK has worked hard to become the global leader.
In 2019, London was ranked top for quality in the Global Green Finance Index.
And in the same year, the City of London founded the Green Finance Institute and Impact Investing Institute.
These institutions help to accelerate the UK economy’s transition to a cleaner, more resilient and environmentally sustainable future.
They are exploring how the financial sector can channel capital at pace and scale towards real-economy outcomes that will create jobs and increase prosperity…
Simultaneously, we work with the financial sector to encourage more people to invest their money in financial products that address social and environmental challenges, as well as seeking a financial return.
Looking ahead, the City of London is excited to host the Green Horizon Summit in November, in collaboration with the Green Finance Institute, and supported by the World Economic Forum.
This is a global, virtual event which will discuss the role of financial services in supporting a green recovery and an economy-wide transition to net zero, leading up to COP26 in 2021.
As the first nation who committed to reaching net zero carbon emissions by 2050, the UK is once again demonstrating its commitment to fighting the global climate emergency through this summit.
For the City of London, we have just announced our own Climate Change Strategy.
The strategy seeks to ensure the Square Mile has net zero carbon-emission by 2040, 10 years earlier than UK government goals.
We will invest ￡68 million fighting climate change over the first six years, creating 800 green jobs.
In addition, we are looking to launch an ESG Leaders Forum later this autumn.
Building on the City’s collaboration with China Green Finance Committee led by Dr Ma Jun, this initiative aims to be practitioner-led, to support UK and Chinese asset owners and asset managers to scale up ESG investing and capital reallocations.
This dialogue will focus on advancing the frontier of responsible investing for UK and Chinese investors ahead of COP26.
And I am really glad to see that both green finance and digital innovation are covered in today’s discussion for further UK-China collaborations.
From the strength of our markets, to our innovations in FinTech, to our growing sustainable finance sector, all of these are clear indicators that despite current challenges, London will remain a leading international financial centre long into the future.
The expertise, talent, capital, sprit and energy of innovation give London the resilience to withstand the most difficult of crises…
And our history has proven that we always come out stronger.
The public markets ecosystem - including investors, regulators, professional advisers and London Stock Exchange - has worked together rapidly and constructively to ensure capital markets remain open and resilient.
And our Regulators have acted quickly, temporary measures have been put in place and innovative methods have been implemented, to ensure London’s financial system remains ahead of the pandemic.
Some of these actions have been specific and short-term in duration; others will play a longer part in the development of London’s markets well after the crisis has passed.
As we emerge from the COVID-19 pandemic, London is ready to partner with the world, including Shanghai, to find solutions that speed up our global economic recovery.
I am excited about what is coming next and, of course, the prospect of working with you.
Thank you.
