CBI member, City of London Corporation has published its 4th edition of London RMB Business Quarterly, in partnership with People’s Bank of China.
This latest edition documents how the average daily trading volume of the Chinese Renminbi over the course of Q1 2019 in London was more than £78 billion, up 30% year-on-year. Moreover, the UK capital now accounts for 44% of total global FX transactions.
Other highlights of the report include:
- The UK retained its position of having the largest share of RMB payments outside greater China.
- Cross-border receipts and payments between China and the UK saw massive growth, hitting more than 55 billion RMB, up 86% on February 2019 and more than 100% on the same month in 2018.
- Investor appetite for dim sum bonds continued, with two more added to London Stock Exchange in May 2019 meaning 101 Dim Sum bonds are now listed on the Exchange with an outstanding value of 27.63 billion RMB.
The report also includes commentary on the UK’s role within China’s Belt & Road Initiative as one of the main financial centres along the silk road. London is now home to over 250 foreign banks, which has allowed it to emerge as a natural partner for financing projects related to the BRI but in 3rd markets. The report continues to document how the policy outcomes of the UK – China Economic & Financial Dialogue, that took place in June, will enable London to take on a key role in facilitating the internationalisation of the RMB and in driving up environmental standards in the financing and deliverance of projects.
To read the report in full, please follow the link.
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