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BEIJING, Oct. 20 (Xinhuanet) -- British banks have the biggest exposure to China's economic volatility among all foreign banks. That's due to their vast loans to Chinese businesses. Eight British banks have operations in China, such as HSBC, Standard Chartered bank, Royal Bank of Scotland, and Barclays.
And in 2015, China Construction Bank opened its first branch in London, following Bank of China. CICC, Agribank and Bank of Communications have also set up offices in London.
In 2012, HSBC issued the three-year yuan bonds in the London Stock Exchange. It was the first British bank to do this.
In 2013, China's central bank signed a currency swap deal worth 20bln pounds with the Bank of England. The two central banks also signed a memo in 2014 for the yuan settlement in London, and later kicked off yuan-pound direct trade with China Construction Bank as the clearing bank.
So, with more cross-border M&As in the horizon for China and the UK, financial institutions on both sides will continue to increase their mutual exposure to each other's economies.
(Source: CNTV.cn)
