China extends HK yuan clearing to Taiwan banks

BEIJING, July 13 (Reuters) - Bank of China (Hong Kong) will be permitted to provide yuan cash settlement services for the branches of Taiwan banks located in the territory, the People's Bank of China said on Tuesday.

Bank of China is the clearing bank for other participants in Hong Kong's yuan settlement programme, which the mainland authorities are expanding as part of plans to gradually internationalise the Chinese currency.

China and Taiwan, regarded by Beijing as a renegade province, signed a landmark trade deal last month. (Reporting by Langi Chiang and Alan Wheatley; Editing by Ken Wills)