Beijing said to choose London for first offshore sovereign debt market

Beijing plans to issue yuan-denominated government debt in London as part of an effort to internationalize its currency, The Financial Times reported, citing unnamed officials. The new scheme, which would make London the first offshore financial center to serve as a sovereign debt market for China, will likely be a key announcement during next week’s visit of president Xi Jinping to the UK. “These will be the first China renminbi government bond issues outside China,” said Jinny Yan, an economist at Standard Chartered Bank in London. “The purpose is not so much to raise funds as to open up an offshore renminbi debt market for the first time.”