London seeks to become a major offshore RMB center

Edited and translated by People's Daily Online

On Jan. 16, the Hong Kong Monetary Authority (HKMA) and U.K. Treasury announced the launch of a joint private-sector forum, which will be facilitated by the two government agencies and aimed at enhancing cooperation between Hong Kong and London on the development of offshore RMB business. The forum is generally believed to be an important measure London adopts to establish itself as a major offshore RMB center.

More offshore RMB centers

British Chancellor of the Exchequer George Osborne said at the Asian Financial Forum in Hong Kong on Jan. 16 that the development of offshore RMB business in London, a global financial center, will not only enhance the breadth and international reach of London's financial markets, but also bring substantial benefit to Chinese economic development.

RMB had a world foreign exchange market share of 0.9 percent in June 2011, compared with China's share in world trade in 2010 at 11 percent. There is scope for substantial expansion of the RMB market in 2012, and there should be more offshore RMB centers.

Stuart Gulliver, chief executive of HSBC, said that London's advantage lies in its world's leading foreign exchange market. "Successful cooperation will support British businesses as they look east to the opportunities in Asia while supporting Asian businesses looking west to Britain as a natural home for trade and investment," Gulliver said.