London’s Bid to Become the Yuan Trading Capital of the World
British Chancellor, George Osborne, says he welcomes the issue of a yuan-denominated bond by HSBC in London, the first issue of a “dim sum” bond in the city.
The announcement of the bond issue by Europe’s biggest bank coincides with the launch by the City of London Corporation of a working group (including five major banks) to develop the city into a major center for offshore yuan business.
HSBC is a member of the new working group and has led the dim sum bond market in Hong Kong – a market that has seen explosive growth, as China provides more avenues for yuan funds to flow across its borders and slowly internationalizes its currency.
Osborne said:
“This is a significant moment. It builds on the progress London has already made toward becoming the western hub for RMB.”
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