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China Construction Bank joins London Stock Exchange
The Asset 22 Sep 2015

China Construction Bank London Branch (CCBL) has been admitted as a member of  the London Stock Exchange (LSE) paving the way for China's second largest bank to play a key role in the development of the renminbi market in the UK and Europe.

 
In a statement, the LSE says the CCBL joins LSE just a year after the two organisations signed an MoU to work together to expand each company’s access to UK, European and Chinese markets as well as promoting the development of the offshore RMB market in the UK. CCBL’s membership also follows its designation as the UK’s official RMB clearing bank.
 
The announcement comes in the week that LSE Group CEO  Xavier Rolet has joined a UK trade mission to China, led by the Chancellor of the Exchequer George Osborne. The trade mission is currently in Shanghai as part of six-day trip. 
 
CCBL is London Stock Exchange’s ninth member from Greater China, highlighting London’s deep relationship with the region, reflecting London’s historic strength as a global financial centre and LSEG’s commitment to London’s development as the pre-eminent offshore RMB centre.
 
“Welcoming CCB as a member firm today is hugely significant step in our journey towards greater collaboration and partnership with China. London Stock Exchange Group is fully committed to working to develop the off-shore RMB market in London as well as facilitating ever closer bonds between British and Chinese capital markets. Today’s announcement will strengthen these vital ties with China and reinforce our reputation as one of the world’s leading international financial centres,” Rolet says.
 
Biao Li, chairman of CCBL says: “We are glad to become a member of London Stock Exchange as a Chinese bank in London. CCBL has been providing a comprehensive range of quality and professional banking products and services to our customers through our extensive global network and diversified service platform. In addition to raising the strategic partnership between CCBL and LSE to a new level, this membership will also enhance our customer servicing capability and further strengthen CCBL’s position in the market.”
 
Since signing the MoU with CCB in September 2014, LSEG has built considerably on its relationship with Greater China: 10 new Chinese companies have been admitted to London Stock Exchange; 35 RMB bonds have been issued in London and 7 new RQFII ETFs have listed on the market, including the first ETF in Europe denominated in RMB.
 
LSE membership allows major trading and broking firms to connect directly to Europe’s most liquid and international order book, and to trade central counterparty cleared securities including some of the world’s largest and well known companies. In addition the same connection provides access to London Stock Exchange Derivatives Market which provides trading in derivative contracts in UK securities and Global Depositary Receipts.
 
In 2014, China Construction Bank officially launched its renminbi clearing service and was appointed as the first designated Renminbi Clearing Bank outside of Asia. In February, 2015 CCB opened its branch in London to enable the expansion of the business in the UK.

 

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