British Chancellor of the Exchequer George Osborne and Chief Executive of Hong Kong Monetary Authority (HKMA) Norman Chan announced (16 January) the next steps in promoting closer collaboration between London and Hong Kong as part of the increasing global use of the Renminbi (RMB).

They announced the launch of a joint private-sector forum, to be facilitated by HM Treasury and the HKMA, that will enhance cooperation between the UK and Hong Kong to support the Chinese Government’s policy in the development of the offshore RMB market.  The forum will explore synergies between the UK and Hong Kong, specifically looking at clearing and settlement systems, market liquidity and the development of new RMB denominated products.

The Chancellor welcomed a recent announcement by the HKMA that it will significantly extend the operating hours of its RMB payments, making it easier for RMB transactions in London to be settled.  

The agreement follows last summer’s landmark accord in which the UK and Chinese Governments for the first time welcomed the development the offshore RMB market in London. The UK Government’s aim is for London to complement Hong Kong in becoming a major offshore RMB centre.

Speaking on his trip to Asia, Mr Osborne said:

“London and Hong Kong are uniquely placed to assist in the development of this exciting market and, further to last summer’s agreement, I am delighted that the financial services industries in both financial centres are working together to achieve this goal.”