The offshore Renminbi (RMB) business in London has seen a substantial growth since an initiative launched April this year, the City of London said Tuesday.

Citi, a new member of the City of London RMB initiative launched in April, reported that its offshore RMB payments in London had risen 40% this year.

Meanwhile, the company also saw its UK-domiciled Renminbi accounts growing 80%.

JP Morgan (NYSE:JPM), another member of the initiative, announced that its UK trading volumes in Renminbi had doubled in the past year and were up 50% in the past 6 months.

HSBC (NYSE:HBC), also a member, noted that its offshore Renminbi trades in London rose 40% in the past year.

“I’m delighted to see that the volume of RMB business in London is growing steadily,” said Mark Boleat, policy chairman of the City of London Corporation and chairman of the City of London initiative’s Steering Committee.

He said RMB’s success echoes the findings of a research report published in June this year, which showed that corporates are very interested in using renminbi products and services in London to generate savings and make business with China more straightforward to transact.

“Education and marketing is a core part of the City of London initiative’s work, to help corporates understand the benefits of using RMB in trade with China,” he added.

He said the City of London will publish an RMB resource pack and case studies next month from different industries trading with China including metals, textiles, automotive and luxury goods, to help raise awareness among European corporates.

The City of London initiative was launched on 18 April 2012. It aims to develop London’s position as the leading western hub for international Renminbi (RMB) business and boost the RMB’s wider international use for trade and investment.

Three banks, namely the China Construction Bank (HK:0939), the Citi (NYSE:C) and Industrial and the Commercial Bank of China (PINK:IDCBY), recently joined the City of London RMB initiative.


Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.