Agreement for yuan clearing bank signed

Offshore yuan activities are accelerating in London, aided by new announcements on Tuesday regarding the appointment of a yuan clearing bank in London and an agreement for direct yuan-pound trading.

China Construction Bank will become London's official yuan clearing bank. The two countries have also agreed to set up direct pound-yuan trading, making British pound one of the few currencies in the world to have direct trading with the yuan.

Andrew Carmichael, a partner at Linklaters law firm in London, said the appointment of a yuan clearing bank in London shows that London has kept its position in the race to become Europe's leading offshore yuan hub.