London on way to be new China hub 19 June 2014London Reporter: Catherine Van de Stouwe
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The Bank of England has confirmed the appointment of China Construction Bank (CCB) as the renminbi (RMB) clearing bank in London.
The appointment of one of China’s ‘big four’ comes after the signing of a memorandum of understanding (MoU) on RMB clearing and settlement in London between the PBoC and Bank of England at the end of March.
This is the second major China deal to be revealed this week with Prime Minister David Cameron having announced on Tuesday that trade deals worth £14 billion had been signed during a state visit by China’s premier, Li Keqiang.
The new trade deals between the London Stock Exchange and two of China’s biggest banks will further develop RMB trading.
Mark Carney, governor of the Bank of England, said the announcement of CCB as the London clearing bank “represents another important milestone on the progress towards greater cross-border use of RMB”.
He added: “As the official clearing bank, CCB will play a valuable role in facilitating greater use of the RMB for trade, investment and other economic activities in the UK, particularly by providing a further option for UK firms to clear and settle their RMB activity within the London market.”
“The bank is committed to further supporting the cross-border use of the RMB in a manner that is consistent with our domestic responsibilities”.
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