Bank of China eyes yuan clearance in Prague

Bank of China Ltd is planning to open its first branch in Prague, the capital of the Czech Republic, to promote the setting up of a yuan clearing system in the country and help it develop an offshore yuan business.

Tian Guoli, chairman of Bank of China, told a China-Czech Business Forum in Beijing on Sunday that China's outbound investment is expected to exceed $500 billion over the next five years, and part of that could be used to provide financial support to infrastructure construction and other major projects in the Czech Republic.

He said the two countries had huge potential areas of cooperation: China offers a large market in retail consumption, natural resources and environmental protection, while the Czech Republic offers advanced technologies in fields such as biomedical sciences, environmental protection and brewing.