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Wednesday, October 14, 2015, 09:34

China 'set to issue RMB sovereign debt in London'

By Agencies

LONDON - China is set to issue government debt in renminbi in London, the Financial Times reported on Tuesday, and may announce the move when Chinese President Xi Jinping visits London next week.

The move would make London the first financial centre outside China to offer its sovereign debt, the FT said.

Citing officials familiar with the issue, the newspaper said the plan is to issue Chinese treasury bonds in renminbi in London after laying the foundations with earlier launches of short-term debt by the People's Bank of China, China's central bank.

British finance minister George Osborne said on a visit to China in September that investors' appetite for trading offshore renminbi remained enormous despite recent market volatility and would increase in the future.

Osborne wants more Chinese investment in Britain and has championed London's bid to become the dominant centre for offshore yuan trading in Europe.

Lasr week, China's Cross-Border Interbank Payment System was launched in Shanghai, designed as an "expressway" to facilitate the yuan's use in international trade and investment.

The system, or CIPS, is a global clearing platform for real-time settlements in the currency.

It connects China with most offshore yuan centers and countries in Asia, Oceania, Europe and Africa, and supports cross-border goods and services trade settlement, direct investment, fundraising and personal remittances.

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