January 28, 2016 marks 100 days since Chinese president Mr Xi Jinping made his State visit to the United Kingdom, signing investment agreements to the value of £40 billion into the UK.
Prime Minister David Cameron heralded 'a golden era' in UK-China relations. In the preceding weeks and months, eyes have been on China, as the world second biggest economy stutters for the first time. Closing of stock markets earlier this year after Shenzhen experienced its biggest loss in nine years has sparked major concerns for the health of China's economy as it enters a slowdown.
However, CaxtonFX analyst Nicholas Laser-Ebisch says that British businesses should not be deterred from trading with China – if anything, they should see it as an opportunity.
"This economic turbulence could mean that now is the ideal time to do business with China. A stock market crash means that prices are lower, and therefore there is a buying opportunity for those in the market," Mr Laser-Ebisch said.
Following the Chinese president's visit to the UK, almost £40 billion worth of deals were agreed between the two countries, spanning a diverse range of industries. This includes £6 billion investment on two nuclear plants, as well as upwards of £1 million being spent on British oil and gas, universities, landmarks, car manufacturing companies and even a theme park.
China's turbulent economy has caused concern, however, Mr Laser-Ebisch maintains the volatility seen recently will not affect planned investment in Britain.
"It is always beneficial to have more people investing in a market, whether that is China buying companies here in the UK or Britain investing in the East. If the resources of the UK investments are combined and then sold to Chinese owners, there will be more capital in the markets which will always be better for the UK."
Presently, currency is also in favour of British importers of Chinese goods. Although sterling has weakened significantly against other world currencies, it has strengthened almost 8% against Reminbi (CNY) since August 2015.
"The renminbi is loosely pegged to the US dollar, which moves every day. However, China has been gradually weakening CNY against the dollar. This means, as a UK business, it is more beneficial to invest in renminbi as opposed to dollars or euros, as the pound is currently stronger against this currency," Mr Laser-Ebisch said.
Sending and receiving Chinese renminbi is an intricate procedure, however many specialist foreign exchange companies like CaxtonFX have dedicated sections of the business to ensure facilitation runs smoothly.
"If you have Chinese renminbi to send over, make sure you clear it with your beneficiary first. It is a complicated process. You need a specific payment code, synapse code (Chinese equivalent of UK SWIFT code), specific reference from Chinese supplier. The payment can be stopped at any point and in many cases won't be credited for weeks. There are capital controls on sending CNY to mainland China so make sure you understand those things before you buy the currency and send it," said Mr Laser-Ebisch.