British Finance Minister Philip Hammond warned that Brexit would cast a "shadow" over the world economy but said he was eyeing a free trade deal with China.

Hammond said on the sidelines of the G20 meeting of  financial leaders in Chengdu, China, that the Brexit vote was not only the shadow the world economy faces. But he said uncertainty will hang over the world's economic outlook for the next couple of years.

Hammond also said he envisions a free trade deal with China once the UK withdraws from the European Union.