LSEG, BOC sign MOU to consolidate RMB business ties

LONDON - London Stock Exchange Group (LSEG) Tuesday announced that it has signed a memorandum of understanding (MoU) with the Bank of China (BOC) in order to form a strategic partnership to expand each company's access to Britain, European and Chinese markets as well as to promote the development of the offshore?yuan market in Britain.

RMB clearing bank in London within sight

France leads eurozone in offshore RMB payments?

The MoU particularly focuses on developing a joint strategy to promote the offshore?yuan market in Britain, along with closer and wide ranging collaboration. Both companies intend to jointly assess and design?yuan clearing and financing processes for future?yuan denominated products, said LSEG.

Within this framework, BOC will work towards becoming a London Stock Exchange member in addition to its LCH.Clearnet clearing house membership, allowing the bank to support new?yuan product development in London, added LSEG.

Chris Gibson-Smith, chairman of LSEG, said in a statement: "Clearing and equity are the cornerstones for the successful expansion of a truly international market for Chinese companies and financial products. Our agreement today will significantly accelerate the writing of this important new chapter in the story of global finance."

Tian Guoli, chairman of the BOC, said: "We are delighted to formalize our longstanding partnership with LSEG which brings together two world-class organizations and represents the next phase in the development of London as the key offshore?yuan hub."

"The innovations which will result from the partnership will provide issuers and investors alike with unparalleled cross border access to the Chinese and UK markets," he added.

Earlier this year, BOC issued bonds of 2.5 billion?yuan ($400 million) denominated bonds in the London Stock Exchange, the biggest one so far in Britain.