Financial Services Focus Group Quarterly Update – Q2 2018

Published on 2018-09-30

London RMB Business Quarterly - by City of London

In Q2 of 2018, the offshore RMB market in London remained stable and the overall trend of offshore FX and interest was moving in line with the onshore rate. 

"China is a market of immense value to the UK and there exists a deep and meaningful relationship between the two countries across many sectors, in particular foreign exchange. Back in 2012 the City of London Corporation was at the forefront of helping make London the number one offshore renminbi clearing centre outside of Asia, and through these new quarterly reports I hope we can further increase awareness of the currency and its role in London’s financial ecosystem.

This year the City Corporation is celebrating the 10th anniversary of our representative offices in Shanghai and Beijing. Over the next decade I look forward to building on the already strong foundations of the relationship between London and China."

- Catherine McGuinness, Chairman of Policy and Resources, City of London Corporation

[Market Overview]

London RMB Foreign Exchange Market

About 37% of all CNH spot trading on EBS took place during EMEA trading hours in June, 2% down from March.

London RMB Bond Market

Seven Dim Sum bonds were newly listed on the London Stock Exchange, with the total size of RMB3.59 billion and the average coupon rate of 4.85%.

London RMB Credit Market

The outstanding amount of RMB deposits registered a decline of 11% QoQ, while the outstanding RMB loan increased of 10.63% from the previous quarter.

London RMB Clearing

Total cumulative clearing volume was RMB4.79 trillion in the first half year of 2018, up 34.6% YoY. The daily average volume was RMB38.8 billion.

RMB Cross-Border Settlement between China and UK

By the end of June 2018, the total actual cross-border RMB settlement between China and the UK amounted to RMB176.2 billion, an increase of 143% YoY.

UK’s Rank as Offshore RMB Centre

The SWIFT report showed UK remains the country with the largest share of RMB payments outside of greater China. The London’s share of total global RMB cleared volume edged up to 5.94% in Q1 2018 from 5.91% in Q1 2017.

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