BG and Diageo boosted by Chinese deals

A couple of the companies benefitting from the Chinese state visit have seen a good reaction in their share prices. Britain and China unveiled trade deals worth around £1.4bn to coincide with the arrival of Chinese Premier Wen Jiabao for a series of talks - as prime minister David Cameron maintained human rights issues were not being ignored. A key agreement is a deal between energy group BG and the Bank of China to allow the energy group to expand its global operations, including in China. The arrangement allows for up to $1.5bn of new funding. BG is up 28.5p to 1303.5p on the news. Elsewhere Diageo , up 15p at £12.75, has received approval from regulators to take an additional 4% stake in its Chinese joint venture for £13m. The move will also trigger a mandatory offer for white spirits maker Sichuan Quanxing. The Chinese have also made positive noises about remaining a long term investor in European sovereign debt, and helping those countries which are struggling with their borrowings.