Timeline for yuan internationalisation

Jan 2004

Yuan personal business allowed; BOC appointed clearing bank

July 2007

Yuan bond issue allowed

July 2009

Pilot yuan cross-border settlement scheme announced

Sept 2010

Offshore banks allowed to open yuan settlement accounts

Jan 2011

Direct overseas investment using yuan allowed for Chinese enterprises

March 2011

• Eight offshore banks allowed access to onshore bond market

• Fiduciary accounts mitigate counterparty risk against BOC

Sept 2011

UK Chancellor George Osborne and Chinese Vice-Premier Wang Qishan welcomed the private sector-led development of the yuan market in London

Dec 2011

City of London initiative on London as a centre for yuan business established

Jan 2012

• UK Chancellor and Chief Executive of HKMA announced co-operation on development of offshore yuan business

• HKMA proposes to extend operating hours of yuan settlement system up to 3:30 pm GMT Aug 2011

• Chinese Vice-Premier Li Keqiang backs HK as offshore yuan centre

• Rules for remittance of CNH for foreign direct investment into China to be codified

• Yuan Qualified Foreign Investor scheme allows HK subsidiaries of Chinese securities firms to invest onshore

June / July 2010

• Yuan cross-border settlement scheme extended

• Corporates allowed yuan accounts

• Bond issuance controls relaxed

Source: London: A Centre for Renminbi Business by Bourse Consult and the City of London.