London set to be finance center for Chinese Yuan

London is more optimistic of being the finance hub for transactions made in Yuan after extensive deals with China.

London set to be finance center for Chinese Yuan

World Bulletin / News Desk

London’s chances of becoming the global center for trading in the Yuan are looking up following recent deals between the UK and China amounting to US$23.8 billion, according to financial experts.

Since 2008 China has been trying to promote the Yuan and increase its use in global trade. Singapore is currently the world's biggest center of Yuan transactions after China and Hong Kong, with London in fourth place but, according to Wu Kegang, Executive Director of the British Chamber of Commerce's LinkToChina, that could soon change.

He said: “I know that one of the biggest banks of China is in talks to set up its offshore clearing center in London. The more Chinese finance institutions there are in the UK helps turn London into a Yuan transactions hub."

Noting the UK's position as China's third largest trading partner among EU countries, Wu said cooperation in the financial sector could be even greater because of London's reputation as one of the world's leading financial centers.

Jonathan Fenby, managing director of the China team of the Trusted Sources research service, pointed out that agreements signed during the recent visit of Chinese Premier Li Keqiang would increase the UK-China trade volume in the energy and finance sectors. UK transactions made in Yuan have also increased recently.

Fenby said: “The talks between Chinese investors and the UK for nuclear energy and fast rail lines still continues as many Chinese investors would like to invest in UK. Some Chinese investors are also planning to make some property investments in the northwest of the country."

He added that UK Prime Minister David Cameron was eager to increase trade with China.

Last Mod: 19 Haziran 2014, 16:11
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