HSBC to raise money in Chinese currency in London

HSBC is to raise money in London in the Chinese currency, becoming the first business to do so outside mainland China or Hong Kong.

Chancellor George Osborne says it is a step towards London being the top Western trading hub in the renminbi.

The bank will be raising a relatively small amount: no more than 200m renminbi (£20m), according to BBC business editor Robert Peston.

The bond will be listed on the London Stock Exchange.

Mr Osborne will say in a speech later: "Let me be clear: London is not in competition with Hong Kong, it is a complement, providing a Western hub for renminbi business."

There were renminbi deposits worth more than 109bn in London at the end of 2011, according to figures provided by the Treasury.

Source & Image : BBC