UK to become first Western government to issue Renminbi bond

Discussion in 'China' started by esolve, Sep 14, 2014.

  1. esolve

    esolve Regular Member

    Aug 22, 2014
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    LONDON (Reuters) - Britain will become first Western government to issue an offshore bond in China's renminbi currency, Chancellor George Osborne said on Friday, deepening efforts to build financial links with the world's No.2 economy.

    News of the bond came after Britain announced 2.4 billion pounds ($3.9 billion) of commercial deals with China, coinciding with Chinese Vice Premier Ma Kai's visit to London.

    "I can now announce that the UK government intends to be the first national government outside of China to issue a bond in China's currency," said Osborne, speaking alongside the vice premier as part of an annual meeting on finance and investment involving the two countries.

    "We have issued bonds in U.S. dollars before. Now we will issue a bond in renminbi."

    Osborne also said Lloyd's of London insurance market had been granted a licence to open a branch in Beijing, days after Britain granted the Industrial and Commercial Bank of China a wholesale banking licence.

    Osborne said the renminbi bond would be similar in size to a 2 billion renminbi bond issued in London by China Development Bank [CHDB.UL].

    The finance ministry said it expects the bond to be issued before the end of the year and that it will be used to finance the government's reserves of foreign currency.

    Britain has been keen to attract Chinese banks and offshore trade in the yuan to bolster its position as the world's main centre for foreign exchange trading.

    In March, Britain and China signed an agreement to set up a clearing service for renminbi trading in London, which is competing with Luxembourg, New York, Paris and Frankfurt to become the top Western offshore yuan centre.
  3. pmaitra

    pmaitra Moderator Moderator

    Mar 10, 2009
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    EST, USA
    It's not the United Kingdom, folks. It is the hidden cabal, the banking cartel honchos, linked to the Bank of England, who are behind this decision.

    Take away the pen-pushing industry, aka banking, and in the absence of a useful navy, the United Kingdom is a little better than a pauper. I wonder whether this decision today, will one day allow PRC to "freeze their assets" consequent to potential punitive Chinese sanctions on the Disunited Kingdom, which it will be a couple of decades from now, all trends maintaining.

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