Prime Minister David Cameron will confirm a series of new initiatives today during a tour of Manchester with Chinese President, Xi Jinping.

Beijing Construction and Engineering Group (BCEG) has been appointed as main contractor for the £700m Middlewood Locks regeneration project in Manchester.

BCEG will also provide £4m of development financing to help kickstart the project to create a new residential and commercial neighbourhood.

The £700m scheme will create a whole new neighbourhood

Middlewood Locks is being developed by FairBriar International, a joint venture between Scarborough, Top Spring International Holdings, a Hong Kong-listed real estate developer in the People’s Republic of China, and Metro Holdings, a Singapore-listed property development and investment group.

The Chinese state visit will also see Hainan Airlines announce the first direct flights from Manchester Airport to China – the first outside London.

Cameron said: “We are committed to rebalancing our economy and building a Northern Powerhouse.

“China is a key trading partner for the UK and the partnerships being made today will see real investment going into the north.

“This is all part of this government’s plan to attract more investment and deliver economic growth to an area of huge potential.”

As announced on the Chancellor’s visit to China last month, Hualing Group is also signing an agreement with Scarborough to invest in three major regeneration projects in the north: Middlewood Locks in Manchester, Thorpe Park in Leeds and Sheffield Digital Campus.