The UK and China have strengthened their financial ties with a new cooperation pact. This agreement names the London branch of the Bank of China as the UK's second official yuan clearing bank. The move aims to make London an even stronger offshore hub for China’s yuan currency. The pact was announced after the first UK-China Financial Working Group meeting in Beijing, held alongside British Prime Minister Keir Starmer’s state visit. The joint statement praised London as a "leading offshore hub" and one of the "largest, most vibrant and innovative" markets for yuan outside China. Co-chaired by the UK’s economic secretary to the Treasury, Lucy Rigby, and China’s central bank governor, Pan Gongsheng, the meeting also agreed to support UK-based Chinese financial institutions in developing new yuan products. The pact will also boost cross-listings of companies on each other’s stock markets and expand green finance efforts. Lucy Rigby said, "The potential that stems from the deepening of the UK’s financial services relationship with China is huge." Offshore yuan hubs like London enable easier trading and investment in yuan, helping the currency grow internationally. The new yuan clearing bank in London will play a key role in processing yuan transactions outside China, making global use of the currency faster and smoother.