The FINANCIAL -- London Stock Exchange on September 22 welcomes China Construction Bank London Branch (CCBL) as a member firm. The bank, the second largest bank in China, joins London Stock Exchange 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 Xavier Rolet will be joining a UK trade mission to China, led by the Chancellor of the Exchequer, the Rt Hon George Osborne MP, according to London Stock Exchange.
CCBL is London Stock Exchange’s ninth member from Greater China, highlighting London’s deep relationship with the region, reflecting its historic strength as a global financial centre and LSEG’s commitment to London’s development as the pre-eminent offshore RMB centre.
Xavier Rolet, CEO, LSEG said:
“Welcoming CCBL as a member firm today is a 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.”
Mr Biao Li, Chairman of CCB London, said:
“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 London Stock Exchange 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 with 10 new Chinese companies admitted to London Stock Exchange. In addition there are 35 RMB bonds issued in London and 7 RQFII ETFs listed on the market, including the first ETF in Europe denominated in RMB.
London Stock Exchange 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.