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Business/Finance See other Business/Finance Articles Title: London to become Chinese offshore banking centre RT Britain has relaxed stringent rules for Chinese banks willing to set up in London. Beijing in turn opened up its markets to British-based investors, marking the latest move to establish the yuan as one of the world’s key currencies. “A great nation like China should have a global currency,” said UK Chancellor of the Exchequer, George Osborne, during his official five day visit to China. And the UK is gladly willing to contribute “through the international center of finance: London”. Under the agreed pilot program, China sanctioned London-based investors to buy up to 80 billion yuan ($13.1 billion) of stocks, bonds and money market instruments directly, avoiding Hong Kong transactions, Reuters reports. Meanwhile, Britain will let Chinese banks set up wholesale branches in London, easing regulations the country had imposed after the financial crisis broke out. Since 2008, Britain has insisted that most foreign lenders should set up their UK operations as "subsidiaries" rather than branches, which provides greater protection for depositors and taxpayers. Less regulation will be welcomed by Chinese lenders who have always complained the rules made it hard to operate in Britain, prompting them to move much of their business to Luxembourg. On top of that, London and Beijing will trade the yuan against the dollar directly, avoiding the dollar. "The Chinese currency, the renminbi, is not terribly well known in Britain at the moment. But over my lifetime I think it's going to become almost as familiar as the dollar, and I want British businesses involved in trading it, investing in it," Osborne told BBC television in China. Currently London accounts for 62 percent of yuan trades outside China and Hong Kong, according to data from financial services provider SWIFT. The latest move will give the renminbi a firmer footprint in Europe and strengthen London's platform to develop the offshore RM (renminbi) bond market. According to an HSBC forecast, within 5 years a third of China’s total trade will be in yuan, which will make it fully convertible and elevate it into the top 3 exchange currencies. According to data compiled by Bloomberg, the yuan has already strengthened 36 percent against the dollar and 47 percent versus the pound since 2005. Poster Comment: Rick Lee Yes both London and recently Paris and 20 years ago Canada reduced property taxes for Asians and in London / Paris case for Saudi's to buy property tax free in those cities. But Florida about 20 years ago or so increased taxes on non-residents. Also about 20 years ago in California old people didn't have to pay property taxes anymore. So yes China and Saudi Arabia can be sucked out of money by London and Paris. But that still doesn't change the price of tea in China. Zuzu This is the country that loves to hate China. Johnson the clown is so proud to announce that Chinese students make up the largest number of foreign students in UK universities. What he did not reveal is that UK universities no longer represent the best in the world. UK universities are like prostitutes, opening to anyone who has money. The 14000 Chinese students are not the top students from China, just those who have the means to pay their way. In fact, China universities have overtaken UK universities in the quality and quantity of research papers and patents. Chinese should boycott the UK +1 Zuzu The visit by the rat-faced Osborne and his clown Johnson, has nothing to do with trade. They are on a begging mission, shamelessly trying to pass off the UK as a nation admired by chinese people. The truth is that the UK has nothing to offer China, and the arrogant racist Anglos are jealous that France, Germany and Switzerland are getting billions of tourist dollars and investments from China. Chinese people must not forget that only recently the UK hosted the dalai lama, and made it very clear that Chinese are not welcome in the UK. They also did their utmost to sabotage the Beijing Olympics. Riz When the dollar collapses then the (euro) the UK should move to incorporate the YUAN as the pound will be quite useless for trade. "Doo m" ha ha. Post Comment Private Reply Ignore Thread
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