London to be key business destination for Chinese lenders

"The dim sum bond issued by the UK government ... reflects the strong policy support for China's currency liberalization and sends a strong message to the outside world about opportunities in offshore renminbi activities."

Zhao says she expects Chinese financial institutions to increasingly expand into the UK market as the Chinese economy's focus shifts from manufacturing-driven to service-based growth.

"China has had strong cooperation with Germany for many years based on the importance of manufacturing for both countries, but as the Chinese government is now focusing on internationalizing and liberalizing its capital market, London has the natural advantage in helping China in this endeavor," Zhao says.

She says Chinese financial institutions are also becoming increasingly sophisticated and diversified, and this trend will continue.

"Chinese banks expanded overseas initially to support Chinese businesses, but now they have gone beyond that stage to become sophisticated and competitive players on the global financial stage," Zhao says.

She says Chinese banks' client base is diversified as they now work with many local businesses, and their product offerings are increasingly diversified. At the same time, they have also maintained their comparative advantages accumulated in both China and globally, such as trade finance capabilities in manufacturing, utilities and infrastructure.