Global investment bank HSBC has appointed Paul Gooding to lead efforts in cultivating London as an international hub for the RMB.
Gooding, who headed the bank's European credit trading for the last seven years, will work in conjunction with public sector officials, fellow banks and the larger HSBC network in building London as the Western gateway to a rapidly ascending Asia. The bank was not available by press time for further details.
Last month, UK Chancellor of the Exchequer George Osborne unveiled plans to promote closer collaboration between London and Hong Kong, which has already established itself as the premier financial centre for the Asian time zone.
The news bolsters recent efforts by the Chinese government to internationalise the country’s currency. Late last year Chinese regulators released a circular on RMB cross-border foreign direct investment, in effect providing RMB funds raised offshore a clearer path into mainland investment opportunities.
Much of the private equity market focus has been on the differences between onshore RMB funds and offshore USD funds – but a third contender for attention will be offshore RMB funds now that a formal process for their use has been put in place, according to ground sources.