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London is set to become a major offshore trading center for the yuan, as Britain teams up with Hong Kong to develop such business. The Hong Kong Monetary Authority (HKMA) and the UK Treasury on Monday agreed to launch a private-sector forum to strengthen links between Hong Kong and London in such areas as clearing and settlement, market liquidity and the development of new yuan-denominated products, the HKMA said in a news release. The forum will have representatives from financial institutions in Hong Kong and London, including HSBC Holdings PLC, Standard Chartered PLC, Bank of China Ltd, Deutsche Bank AG and Barclays PLC. It will meet twice a year, and the first meeting will be held in Hong Kong in May, it said. China and Britain agreed in September to cooperate on the development of the offshore yuan business and develop London into an offshore yuan market. UK Chancellor of the Exchequer George Osborne said in Hong Kong on Monday that the intention was to "establish London as a new hub" for the yuan. "It's clear that there is scope for a substantial expansion of the yuan market in the coming years," he told a meeting of Asian finance officials and executives. He added that London was perfectly placed to be a gateway for Asian investment and banking to Europe and as a bridge to the United States. Osborne said establishing London as an offshore center for yuan-denominated settlements will benefit China's economic development as well as Britain's. | 
