London May Turn Out as Coming Offshore Yuan Centre
Investors in London would likely be encouraged due to China to become the subsequent offshore yuan trading centre following Hong Kong.
It has been revealed that the investors would be given the right by China to purchase mainland stocks, money market instruments and bonds, all worth nearly 80 billion yuan.
China and Britain released the statement on Tuesday together in a statement. The report said that the deal comes under the RQFII (Renminbi Qualified Foreign Institutional Investor) plan. The RQFII has never extended outside of Hong Kong (HK).
This is, reportedly, the first time that the investors would be offered all the more avenues to put in yuan. More incentives would also be received by investors so that the currency could be held.
China has always preferred such an outcome as it seeks to convert the renminbi into a currency that someday would be traded all over.
The report said that the British government has agreed in turn for beginning of talks, which allow Chinese banks to form wholesale branches in the UK.
"With the increasing presence of Chinese banks in London, the granting of the RQFII license will strengthen and widen the platform for London to develop the offshore RMB (renminbi) bond market", affirmed ANZ analysts.
New Zealand News
- German automaker Volkswagen invests $620 million in Northvolt to secure EV battery supply
- Top places to see in Singapore
- Xpeng enjoys 483% year-over-year jump in May 2021 deliveries; thanks to robust sale of P7
- Tesla offering new discounts & perks in China amid negative press
- Electric Vehicle Council slams Victoria Government for proposed punitive mileage tax on electric cars