City Policy Chairman speaks on European off shore RMB market
Mark Boleat, the City of London Corporation’s Policy Chairman, spoke today on the European off shore RMB market at a seminar hosted in the City. The event on Shanghai Free Trade Zone Bonds was hosted by the Shanghai Clearing House, the Bank of China London Branch, Euroclear Bank and the International Capital Market Association (ICMA).
The City of London Corporation has worked for years with the Chinese authorities on RMB (Chinese currency) internationalisation. Working closely with industry and supported by the UK Government and Bank of England, the City has supported the growth of a long-term sustainable offshore RMB market in the UK for the mutual benefit of British and Chinese business.
Mark Boleat indicated that the RMB has become recognised as an international currency and RMB business in both the UK and across the European region as a whole has become established and is here to stay.
Mark Boleat said:
“The European offshore RMB market is an excellent source of capital and talent. It confirms the significance of Europe as a committed partner of China’s in driving forward the overall internationalisation of the currency.
“Though big bang announcements are exciting and harness support, it is the gradual and flexible approach that will ensure the sustainable success of the offshore market in Europe.”
During the speech, Mark said that the City of London considers RMB internationalisation now more than ever before through a holistic approach.
He also added:
“We must remember that this process is intrinsically linked with wider financial and economic reform in China. It is this broader reform which affects the changing nature of trade and investment - which underpins the UK-China financial relationship.
“This is why the City of London and its industry partners are not only focussing on developments within the offshore market, but also those in China. The gradual opening of the interbank market is an obvious example.”
He concluded his speech by saying that increased interoperability and regulatory harmonisation across both regions would in time result in full integration of the RMB into the global financial system.
Mark Boleat who leads the City of London’s ongoing China policy work will visit Shanghai in June to further engage with Chinese stakeholders on financial sector reform and opportunities for collaboration with UK financial services experts.
Notes to editors
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- About the City of London RMB Advisory GroupThe City of London RMB Advisory Group was established in 2016 to succeed the ‘City of London initiative on London as a centre for renminbi business’ (2012-2015), which achieved its aim to develop a private and public sector strategy for the development of London as an international centre for RMB business. The RMB Advisory Group maintains the coordinated input from the UK-based financial sector on matters relating to the UK as a leading centre for RMB business and the internationalisation of the RMB. It is facilitated by the City of London Corporation and supported by HM Treasury and the Bank of England.
- About the City of London CorporationThe City of London Corporation is a uniquely diverse organisation. It supports and promotes the City as the world leader in international finance and business services and provides local services and policing for those working in, living in and visiting the Square Mile. It also provides valued services to London and the nation.
- The City of London Corporation and ChinaThe City of London Corporation has long recognised the critical importance of China to the UK-based financial services industry. The rapid growth of the Chinese economy brings a demand for international financial services - both to provide capital, risk management and expertise for companies as they expand - and to meet the needs of its growing middle classes, in areas such as savings products, pensions, insurance and wealth management. An important part of the City of London Corporation’s work is to help UK-based firms to access the Chinese market, and to promote a genuinely two-way exchange of trade and investment in financial and professional services. The City of London Corporation engages with the Chinese leadership, regional governments and with Chinese firms to position the City as China’s partner of choice in the provision of financial services, and the UK as a location of choice for Chinese overseas investments. The City of London Corporation’s engagement with China is guided by the City of London Advisory Council for China, a group of senior Chinese financial sector leaders. The Council provides a formal structure for engagement with Chinese financial services firms at a senior level, and expert guidance and advice on the Chinese market. The Council guides the City of London Corporation’s China strategy, and the work of the City of London representative offices in Beijing and Shanghai. More information is at www.cityoflondon.gov.uk/china