London renminbi trading business promotes China-UK cooperation

LONDON - "London's renminbi trading business is helping build stronger trade and business partnerships between the UK and China, which helps create jobs and growth in both countries," said Michael Bloomberg, Founder of Bloomberg L.P.

"Bloomberg is in a unique position to help investors find new opportunities, and to connect Chinese companies to the global markets, and we'll keeping looking for ways to do that," said Bloomberg in a China investor roadshow hosted by Bloomberg on Tuesday.

Chief Representative of the People's Bank of China Representative Office Jin Mei was confident about renminbi internationalization.

Jin said: "We think that it is comprehensive strength and financial market development of one country that drives its currency internationalization. So the pace of renminbi internationalization is mainly determined by market choice, and the PBOC has no timetable."

"In order to better serve real economy and facilitate trade and investment, we will continue to promote the use of renminbi with established principles and make renminbi a freely usable and convertible international reserve currency," Jin noted.

Meanwhile, Jin stressed China will continue to push forward the opening up of financial market, and realize renminbi convertibility under capital account in an orderly manner.

In exchange rate regime reform, Jin indicated that China will enhance the reference to a basket of currencies, strengthen market's role in determining exchange rate, increase the two-way flexibility of renminbi exchange rate, and maintain renminbi exchange rate around a reasonable equilibrium.

"In practice, we are now referring to three baskets: the first is CFETS basket, which comprises 13 currencies; the second is BIS basket, which comprises 40 currencies; the third is SDR, which comprises four currencies," Jin said.

"We hope that renminbi exchange rate is stable against all three baskets. We believe that renminbi exchange rate will gradually shed the impact of short-term expectation and return to levels determined by fundamentals," she added.

The global roadshow themed "China: Navigate the New Silk Road" aims to update investors and financial professionals on China's currency outlook and investment landscape.

In its fifth year, Bloomberg's China investor roadshow will expand to over 12 cities worldwide in 2016 including New York, Frankfurt, Paris, Dubai, Tokyo, Singapore and Mumbai.