(Repeating to fix formatting)
June 11 China Construction Bank (CCB)
, China's second-largest lender, has been selected to
become the first clearing service for renminbi trading in
London, the Financial Times reported, citing people close to the
The clearing bank will help secure London's position as a
global centre for foreign exchange trading, as financial
capitals around the world race to secure a slice of the
fast-growing offshore yuan trade.
The paper said Chinese Premier Li Keqiang was expected to
announce the deal when he visits London next week for an annual
summit, a reciprocal visit following a trip by Britain's prime
minister to China last year. (link.reuters.com/sep99v)
CCB was selected despite initial expectations that local
rival Bank of China was the likely choice, the FT's sources
said, adding that the decision had been made in Beijing, not
The Treasury declined to comment.
Britain and China signed an agreement last month to set the
service up, days after Germany clinched a similar deal. China is
a focus of the British government as it tries to boost the
country's exports, including those from its powerful financial
Hong Kong is by far the largest centre for offshore yuan
deposits, according to consultancy PwC. Deposits in Taiwan,
Singapore and Macau also dwarf those in Luxembourg, Paris or
London. New York lags far behind Europe.
Britain's hope is that a London clearing bank would
complement the main clearing infrastructure in Hong Kong, easing
the transfer of funds in the western time zone.
(Reporting by Richa Naidu in Bangalore, additional reporting by
David Milliken in London; Editing by Eric Walsh)