Further Enhance The Status Of London'S Offshore Renminbi Center

< p > recently, there has been frequent exchanges between China and Britain.

Li Keqiang, premier of the State Council, has just concluded his visit to Britain. This is an important handshake of the two leaders in the new situation.

During this period, the central bank continuously announced the significant move of RMB internationalization, launched the direct trading of RMB sterling, and authorized the Construction Bank (601939, stock bar) as the clearing bank of the RMB business in London.

Mr Bao said that the authorization of the London Clearing Bank is an important step towards becoming an offshore RMB trading center in London.

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The development of RMB direct trading with sterling is an important measure for China and Britain to jointly push forward the further development of bilateral economic and trade relations. < p >

This will help to form a direct exchange rate between RMB and sterling, reduce paction cost, simplify operation procedures, facilitate bilateral trade and investment facilitation, help strengthen financial cooperation between two countries, and further promote the development of RMB internationalization.

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"P," the Chinese central bank authorized the Construction Bank to act as a clearing bank for London's RMB business. "This is the first time that the central bank has chosen RMB clearing banks in other countries and regions outside Asia. It is of great significance to promote economic and trade cooperation between China and Britain and even China and Europe, and to promote the construction of offshore RMB centers in London.

This will further increase the liquidity of the renminbi in the London market, thereby meeting the demand for more Renminbi by more European enterprises and British companies.

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P, as one of the most international financial centers in the world, has always been the most important market for the promotion and use of global currency internationalization.

In the latest research report released by the city of London, the status of London's offshore renminbi center has been further consolidated.

The construction of RMB business in the city of London has been in its third year. There has been an increasing interest in expanding the use of Renminbi between its banks and its customers.

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< p > "London has always maintained its leading position in the global offshore RMB market.

In 2013, London's trading volume and foreign exchange volume continued to grow steadily.

Bao Mokai said that in addition, clearing the network of offshore RMB market in the center of RMB clearing behavior in London will enable RMB to operate directly outside the Asian time zone. With the help of London's time zone advantage, it will help RMB funds operate more efficiently and conveniently in the European region and even in the global scope.

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< p > April 1st, the people's Bank of China announced the signing of a memorandum of cooperation with the Bank of England on the establishment of RMB clearing arrangements in London.

The central bank said that the establishment of the RMB clearing arrangement in London will help the Chinese and British enterprises and financial institutions to use RMB for cross-border pactions and further promote trade, investment liberalization and facilitation.

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At present, London's share in the RMB offshore market is 15 billion yuan RMB P.

Although this is just a drop in the ocean compared to the deep capital market in the city of London, Mr Khan said, "China's financial reform is growing stronger, and thanks to these reforms, Britain has become the world's leading offshore renminbi centre outside Asia."

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< p > and the offshore RMB index of the Bank of China shows that at present, the United Kingdom is the largest cross-border RMB settlement country outside Asia, accounting for 3% of the cross-border RMB settlement in China. As the largest foreign exchange trading center in the world, London has accounted for 2/3 of the total market share in the world except for China and Hongkong.

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< p > despite the expected devaluation of the renminbi this year, it is believed that it may affect the confidence of the outside world in RMB.

"The recognition of the international market for a long time is that the RMB is underestimated under the intervention of the government. It is very attractive for investors to hold a continuously appreciating renminbi. However, as the Chinese government vigorously promotes the free convertibility of the RMB, it means that the renminbi will become more volatile as a trading currency, just like the pound and the US dollar, but volatility means that the exchange rate is determined by the market rather than the administrative means, so the depreciation of the RMB will not affect the market's confidence in holding RMB."

Bao Mokai said.

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< p > whether British institutional investors are interested in A shares, because the A share market performance is not very good. Bao Mokai said that the UK very much hopes to further increase its share on the basis of the current 80 billion yuan qualifying foreign institutional investor (RQFII) quota.

So UK institutional investors are very concerned about the A share market.

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< p > "the market downturn is only a phased phenomenon. This is very normal, and so is it in Britain.

For institutional investors, their concern is not the short-term stock price drop, but the performance of the target company that they invest in is predictable.

Further, Mr Bao said that if we invest in a state-owned company or a part of state-controlled enterprises, it may be difficult to predict future performance, because if problems arise, the state may intervene and may cause more uncertainties.

Relatively speaking, investment private private enterprises, basically the goal of private enterprises is to maximize profits, so relatively forecast will be easier.

So institutional investors may be less concerned about state-owned or state-owned enterprises.

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(P) whether the development of offshore RMB centers in different countries will cause competition for London, says Mr komai. London has become the leading international offshore RMB offshore market, or the Western Renminbi offshore market, because London is the largest foreign exchange trading center in the world. This is one of the most important factors for London to maintain its current importance. Other markets can not develop overnight without foundation.

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< p > Bao Mo Kai said, "we have never thought of competing with anyone. What we are concerned about is to promote the development of RMB business as soon as possible, and promote the development of the business by providing targeted services targeted to banks. If other financial centers or market places do similar things, this is a very good impetus to the internationalization of RMB."

The direct trading of sterling and RMB has accelerated the process of RMB internationalization. Some people think that this is also a step towards dollarization.

In this regard, Bao Mo Kai said that the direct exchange between the renminbi and the pound will produce the effect of dollarization, but this is not going to dollarization.

"I know a lot of people are critical of the US dollar policy, and China holds a large amount of foreign exchange reserves of the US dollar, and the status of RMB in the international market is not very match with the fact that China is the second largest economy in the world. Therefore, we need to accelerate the process of RMB internationalization, and the rise of RMB in the international market also provides investors with more choices and contributes to the flexibility of the financial system."

"Therefore, going to dollarization is not an end, but an effect," says Mr Bao.

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< p > for the performance of the RMB, Bao Mo Kai said that as China's economy increasingly integrated into the global economy and China's market-oriented reforms, the fluctuation of RMB will be a norm.

"I believe that if China's economy continues to grow as predicted by all parties, the renminbi will still be on the rise."

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< p > for London's "a href=" //www.sjfzxm.com/news/index_c.asp "RMB" /a > bond market, Bao said that although London has taken the lead in RMB trade financing and RMB a href= "//www.sjfzxm.com/news/index_c.asp" > foreign exchange paction < /a >, the two level market of RMB bonds has not yet been formed.

Bao Mokai believes that the RMB bond market is related to the depth of the RMB market. With the rising internationalization of RMB, institutional investors will have more demand for Renminbi, and the liquidity of RMB bonds will increase substantially. In this regard, London has many experience and technology.

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< p > for the gold international board, namely Shanghai's a href= "//www.sjfzxm.com/news/index_c.asp" > Gold Exchange > /a >, whether the international trading platform registered in the Shanghai free trade zone will have a impact on the quotation status of London in the gold market, Bao Kay said that the new trading market can not be recognized overnight. He disclosed that the London Metal Exchange is planning to launch a gold contract denominated in Renminbi.

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In short, P said, "the city of London has long recognized China's importance to the financial services industry in the UK.

We seek to strengthen the relationship between London and China so as to further create mutually beneficial business opportunities.

China is already the second largest overseas investor in London and the third largest overseas investor in the UK.

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< p > "Premier Li Keqiang's visit to Britain marks the promise of China and the United Kingdom to further develop more powerful trade and investment opportunities."

"China is a huge country with its own culture and way of doing things.

People can hold this view, just as they can think of things happening in the UK.

But we believe that the development of close economic and trade relations and financial cooperation between China and Britain is the most important. "

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