Deposits boost ambitions as offshore trading center
Source: Agencies |
April 19, 2012, Thursday
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Print Edition
Print Edition
RETAIL and business customers and banks hold significant yuan-denominated deposits in London, a report released yesterday showed, as London positions itself as an offshore yuan trading center with the backing of the British and Chinese governments.
Customer and interbank yuan deposits total 109 billion yuan (US$17.3 billion), said the report published by the City of London Corporation as part its bid together with several major banks to boost London as an off-shore yuan trading center.
"I welcome this initiative, which will further strengthen London's development as the leading Western hub for the international yuan market," said British finance minister George Osborne.
The initiative follows an agreement between Britain and the Hong Kong Monetary Authority in January to cooperate on offshore yuan trading. The HKMA extended the operating hours of its yuan settlement system into the London day.
London and other financial centers like Singapore are seeking to capitalise on the rapid growth of the off-shore yuan bond market in Hong Kong since its launch less than two years ago, as investors aim to put their yuan deposits to work by buying high-yielding yuan bonds.
Borrowers have included international corporations like Tesco and McDonalds as well as international banks.
The existing deposits in London show "that a pool of yuan liquidity is being established which will be valuable in developing the potential of London as a center for yuan business," said the report.
Customer and interbank yuan deposits total 109 billion yuan (US$17.3 billion), said the report published by the City of London Corporation as part its bid together with several major banks to boost London as an off-shore yuan trading center.
"I welcome this initiative, which will further strengthen London's development as the leading Western hub for the international yuan market," said British finance minister George Osborne.
The initiative follows an agreement between Britain and the Hong Kong Monetary Authority in January to cooperate on offshore yuan trading. The HKMA extended the operating hours of its yuan settlement system into the London day.
London and other financial centers like Singapore are seeking to capitalise on the rapid growth of the off-shore yuan bond market in Hong Kong since its launch less than two years ago, as investors aim to put their yuan deposits to work by buying high-yielding yuan bonds.
Borrowers have included international corporations like Tesco and McDonalds as well as international banks.
The existing deposits in London show "that a pool of yuan liquidity is being established which will be valuable in developing the potential of London as a center for yuan business," said the report.
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