A vendor holds Chinese Yuan notes at a market in Beijing, August 12, 2015.
China’s state-owned currency market stated on Sunday it was preparing to open branches in London and New York as part of efforts to promote the yuan’s global status. The China Foreign Exchange Trade System (CFETS), a subsidiary of China’s central bank, said in a statement that by expanding its network offshore, it intends to serve more overseas organizations and end up being a “main trading platform and rates center” for the yuan internationally. China has been progressively loosening its capital controls to permit more foreign involvement in its onshore yuan market. Beijing is likewise promoting offshore yuan centers to promote international use of the Chinese currency. CFETS provides an electronic bidding system for the yuan versus foreign currencies. It likewise provides cross-rate trading, along with RMB interbank financing and bond trading. Yuan-based trading on CFETS completed 618.12 trillion yuan ($ 94.24 trillion) in 2015, according to main Xinhua News Company. The CFETS stated that it would even more enhance cooperation with overseas trading platforms, and aim to ultimately offer trading services 24 Hr a day, seven days a week.
The market platform extended its trading hours for China’s onshore yuan this year to end trading at 11:30 p.m. local time from 4:30 p.m. previously. “CFETS is willing to offer comprehensive service and support to British organizations who take part in China’s inter-bank market, and strengthen cooperation with them as Chinese business go offshore,” Sun Jie, executive vice president of CFETS, told an event in Shanghai. The event, concentrated on the subject of yuan’s internationalization, was attended by Chinese and British regulatory authorities, along with banks.
Britain and China have been striving over the last few years to reinforce their financial relationship, regardless of strong distinctions due to Britain’s criticism of China’s human rights record. Chinese President Xi Jinping paid a state check out to Britain last October to seal exactly what both call a “golden time” in relations. Xavier Rolet, CEO of the London Stock Exchange Group (LSE.L), informed the very same event on Sunday that London is now the world’s biggest offshore yuan center after Hong Kong.
LSE is dealing with the Shanghai Stock Exchange to introduce a cross-border investment plan to connect the British and Chinese stock markets. (Reporting by Samuel Shen and Michael Martina; Modifying by Clelia Oziel).