WIREDGOV

The second meeting of the London – Hong Kong Renminbi (RMB) Forum took place on 4 December in HM Treasury.

Bringing together representatives from ten global banks and over sixty corporates from across Europe, the Forum provides an excellent opportunity to discuss the latest developments in the growing RMB market.

The Forum was announced by the Chancellor of the Exchequer, George Osborne and Chief Executive of the Hong Kong Monetary Authority, Mr Norman Chan, in January 2012. The RMB Forum met for the first time in Hong Kong in May 2012.

The continued success of the Forum will cement London’s place as the Western Hub for RMB business. This is central to the Government’s strategy to enhance the UK’s status as the world’s leading international financial centre. The benefits go far beyond financial services. Access to RMB products and services in London will;

• make it easier for UK and European firms to invoice, hedge and fund in RMB, which can lead to significant savings on foreign exchange transactions, improved pricing with Chinese counterparts, and reduced exposure to risk; and
• not only reduce costs, but also generate trade to support UK and European exports, growth and employment.

On 4 December, bank participants reviewed the supply of global RMB liquidity, developments in clearing and settlement infrastructure and the growth of RMB products and services. The banks also agreed a series of steps to further strengthen the global platform for RMB trading.

• Outcome Statement for Day One of the RMB Forum.

Yesterday, corporate treasurers from a wider range of European firms discussed RMB trade settlement and their experience of using RMB products and services.

The Financial Secretary to the Treasury, Greg Clark, said:

“I am delighted to welcome participants to the second meeting of the London-Hong Kong Renminbi Forum to London.

“Establishing London as the Western centre for Renminbi is a key priority for the UK Treasury and today’s discussion marks further important progress in developing the market.

“I am also looking forward to participating in tomorrow’s discussion on how Renminbi products and services in London and Hong Kong support growth in trade and the real economy.”

Notes for Editors

1. The London – Hong Kong Forum is a two day event, facilitated by HM Treasury and the Hong Kong Monetary Authority.

2. It brings together senior representatives from the London and Hong Kong Offices of ten leading banks in the global RMB market: China Construction Bank, Citi and Industrial and Commercial Bank of China will join Barclays, Bank of China, Deutsche Bank, HSBC, JP Morgan, Royal Bank of Scotland and Standard Chartered Bank.

3. The first day focused on global RMB liquidity, developments in clearing and settlement infrastructure and the growth of RMB products and services.

4. The second day will bring together over sixty corporates and ten global banks to discuss the opportunities and challenges for companies to invoice, hedge and fund in RMB.

5. The RMB Forum met for the first time in May 2012.