China Construction Bank (0939.HKG, 601939.SHA) has been selected as the clearing bank for renminbi transactions in London, Financial Times reported, citing unnamed sources. It had earlier been expected that Bank of China (3988.HKG, 601988.SHA) would win the role. The change will allow investors to cut the risk from making overseas payments in renminbi, and should make trading the currency more efficient and liquid. It may also attract Chinese companies keen to invest in Europe, as well as making it easier for investors to gain access to China’s onshore capital markets.
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