[Golden Era] Lord Mayor of City of London advocates stronger financial cooperation with China

2015-10-16 09:18:58

China has become Britain’s most important trading partner for financial and professional services, the City of London and the UK government are pushing forward stronger economic ties between both countries.

2015 marks the beginning of a ‘golden era’ in UK-China relations. Lord Mayor of the City of London expressed the international development of the RMB, the creation of a clearing bank, signing of a bilateral swap line, and issuing of the first non-Chinese sovereign RMB bond.


In 2012 April, the City of London officially launched an initiative to make London as the centre for renminbi (RMB) business promoting the internationalisation of the RMB. These three years has seen great progress with the RMB becoming the world’s fifth largest currency of payment and settlement in international trade.


“The UK is by far the largest recipient of Chinese direct investment in the EU, and London is a western centre for RMB business. Moreover, China’s economic plan, including for example key components like the One Belt One Road strategy, unlocks untapped potential with opportunities for shared growth and from which British firms can also benefit.” said Yarrow.



In his address at the Second City of London-Qianhai Second RMB International Forum Yarrow placed particular emphasis on the role of the RMB bond market and stressed that London will become the London renminbi (RMB) clearing house." Trade companies that work with the UK and China, more than 50% of companies are using RMB settlement, and the numbers are growing."


Having served as Chairman of the London Investment Banking Association he comments on the current Chinese stock market crash and the RMB exchange rate. According to financial website he states “I believe that the currency market is difficult to predict, but the People's Bank of China undertook accurate and correct measures, in the long term it will depend on the development of the market.


"My view is that the current volatility is down to the fact that the Chinese market is still, in comparison to other markets, quite young. Experiencing these difficult periods helps to build long-term institutions that can absorb shocks and withstand such periods of volatility,” adds Yarrow


He considers China's economic slowdown volume as an entirely normal market phenomenon. In his view, China's economic reform was very successful due to the effective supervision of Chinese financial regulators


Yarrow is due to meet President Xi Jinping next week to conduct further discussions. “I look forward to welcoming President Xi Jinping during his visit this October when I host a banquet in the City in his honour and will look to cement even stronger ties between our two nations. My visit next week is therefore the latest step in reaffirming these close bilateral relations between our two countries as we move forward on the path to prosperity.”





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