London overtakes S'pore in yuan clearing
LONDON has edged out Singapore as the second-largest offshore yuan clearing centre in terms of payments processing volumes, just behind Hong Kong, global transaction services organisation Swift said yesterday.
Singapore overtook London in February 2014 but the trend started to reverse in January this year.
Hong Kong processes 72.5 per cent of all yuan payments, and the market shares of London and Singapore are 6.3 per cent and 4.6 per cent respectively.
China Construction Bank's London branch was appointed as the yuan clearing bank in Britain in June 2014.
"The UK's rise to become the largest offshore yuan hub outside Hong Kong reflects the importance that European companies are placing on their commercial relationships in China," Eddie Norton, HSBC's regional head of payments and cash management of Europe, said.
The yuan remained the fifth most-used currency for global payments by value in March - with a market share of 1.88 per cent.