British financial secretary to visit Hong Kong for expanding offshore RMB market

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British financial secretary to the Treasury Greg Clark is expecting to visit China's Hong Kong this week, aiming to further progress in the partnership between Hong Kong and Britain in developing offshore markets for the Chinese currency Renminbi.

Clark is visiting Southeast Asia this week with the trip culminating in Hong Kong when he attends the London-Hong Kong Renminbi forum, the third of the kind, which is scheduled to be open on Thursday, according to a statement issued on the UK government website on Wednesday.

He will deliver a key note speech, emphasizing the progress the Forum has made in cementing Hong Kong and London's positions as the world's leading offshore centers for Renminbi.

Describing Hong Kong as a leading global financial center and a gateway to China's mainland, Clark said in an article carried on the Hong Kong newspaper South China Morning Post on Wednesday that Hong Kong is a natural home for development of the offshore RMB market.

"Hong Kong's business environment commands the confidence of investors worldwide, whether from London, Lanzhou or Los Angeles. Over 50 percent of UK investment in Asia is in or flows through Hong Kong. That is a tremendous vote of confidence in Hong Kong by UK companies," he said.

He expressed his hope in the article that this week's London-Hong Kong Forum will take further support development in the offshore market in both centers in London and Hong Kong, building on their positions as the RMB hubs of the East and the West.

According to related figures, the volume of Renminbi denominated import and export financing in London has increased 100 percent since 2011.

"This is delivering real benefits and savings for business," Clark said.

It is estimated that firms can reduce their transaction costs with China by up to 7 percent by denominating their trade in Renminbi.

According to the Society for Worldwide Interbank Financial Telecommunications (SWIFT), London now accounts for 28 percent of offshore RMB settled transactions.