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Osborne's China deal makes London renminbi hub outside Asia

 a China-UK Infrastructure Alliance will be established to increase co-operation on major projects

Simon Read
Tuesday 22 September 2015 02:19 BST
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London is to become the major centre for trading in China’s currency outside Asia under an agreement made by the Chancellor, George Osborne, during his trip to Beijing.

The deal will see the People’s Bank of China issuing short-term central bank renminbi bonds in London – the first time it has done so outside China.

“I want the UK to be the natural Western hub for renminbi trading,” Mr Osborne said. “We should be doing more business with China, we should be better connected with China economically, our financial institutions should establish stronger links.”

He was speaking at the end of the annual UK-China Economic and Financial Dialogue in Beijing, which resulted in 53 agreements, including Chinese support for the Chancellor’s Northern Powerhouse scheme to boost the North of England.

Also confirmed was the first meeting of a China-UK Bilateral Investment taskforce to take place within a few weeks.

Meanwhile a China-UK Infrastructure Alliance will be established to increase co-operation on major projects in the two countries as well as third markets – including areas covered by China’s proposed “New Silk Road” to link Beijing with Europe.

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