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.
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“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.