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'Yes' in Scotland Could Mean 'maybe' for Chinese Companies
Published on: 2014-09-19
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alt As Scotland votes on Thursday on the question of independence, the whole world is watching and that includes China.
 
Independence could mean uncertainty for Chinese companies, so they might invest less in the United Kingdom generally in the short term, experts said.
 
Premier Li Keqiang was asked about the referendum during a visit in June. Li said he wanted a "strong, prosperous and united United Kingdom".
 
That message was echoed by Vice-Finance Minister Zhu Guangyao, who said stability was vital for foreign investors. Zhu commented after a UK-China investment meeting in London earlier this month.
 
According to advisory firm CrossBorder Capital, investors have pulled money out of the UK at the fastest pace since the financial crisis of 2008 amid fears that Scots will say "yes" to independence and trigger a broader political crisis.
 
Net flows out of the UK hit 27.3 billion USD in August, the highest since Lehman Brothers Holdings Inc collapsed.
 
The UK is the most popular European destination for Chinese investment, which has created or preserved more than 6,000 jobs in the UK, said a UK government report. 
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