Brexit Threatens London’s Status as a Leading RMB Trading Hub
Simon Lee told the Japanese Yomiuri Shimbun in an interview that London is the springboard for China to expand its offshore RMB trading in Europe, and it is not easy to find a replacement for the city even after Brexit.
The Chinese yuan slumped to more than 5-years lows following the UK’s decision to leave the European Union (EU) in a historic referendum. The Brexit has started to affect the Chinese economy. China has put an emphasis on the UK in its European strategy, and it is expected that Brexit would force Beijing to readjust its diplomatic and economic policies with the UK.
As a leading power within the EU, the UK has been using its position to facilitate better relations between China and other EU members, and London is a leading offshore renminbi (RMB) trading center in the world. This May, the Chinese government issued its first ever sovereign RMB bond outside of China in London which was an important step of RMB internationalisation.
Simon Lee, Assistant Dean (Undergraduate Studies) and Senior Lecturer of School of Accountancy at The Chinese University of Hong Kong Business School told The Yomiuri Shimbunin an interview that “with its gateway position in Europe, London is the springboard for China to expand its offshore RMB trading in the region, and it is not easy to find a replacement for the city even after Brexit.”
Please click on the image below to read the original Japanese article published in The Yomiuri Shimbun.
Source: The Yomiuri Shimbun《読売新聞》
Date published: 28 June, 2016
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