HONG KONG Dec 2 Standard Chartered Bank
said on Monday it will cooperate with Agricultural
Bank of China to provide yuan clearing services in the
UK, helping financial institutions and corporates execute yuan
With Agricultural Bank of China's extensive distribution
network and abundant yuan funds in China's onshore market, the
cooperation will inject sufficient yuan liquidity into the
market in London.
The availability of yuan clearing services in the UK will
also pave the way for greater awareness and development of yuan
products and services beyond Hong Kong.
"London's position as a leading international financial
center is enhanced by the ability to offer onshore clearing
services that allow on-demand access to settle RMB denominated
services within the London time zone," Peter Sands, Group CEO of
Standard Chartered, said in a statement.
"The opportunity to boost RMB liquidity in London could be
used to fund large investment projects and support the
development of other financial activities," Sands said.
The announcement was made as British Prime Minister David
Cameron began a trip to China.
As the world's largest FX centre, London's yuan business is
Across all deliverable FX products, London banks conducted
41 percent of offshore yuan trading in the city. In spot
trading, their business transacted in London was nearly 59
percent, City of London said in a report released in June.
The London Metal Exchange aims to introduce yuan-based
contracts denominated and settled in the Chinese currency via
its Hong Kong platform, LME Chief Executive Garry Jones told an
industry conference in November.
China is stepping up efforts to promote its currency to
global investors, with the aim of lifting the international
clout of the yuan and finally making it on par with the U.S.