The ‘Belt and Road’ Initiative and the London Market – the Next Steps in Renminbi Internationalization

Summary:

A three-part paper published by the Chatham House exploring the feasibility of using China's Belt and Road initiative as a means to expand the use of the renminbi, both in the real economies of Belt and Road host countries and in the London offshore financial market.

Further information:

The first paper - Part 1: The View from Beijing - looks at a number of factors that are likely to emerge as new drivers of renminbi internationalization in the medium term and investigates the investment demand arising from Belt and Road projects and the potential for further cooperation between China and the United Kingdom (UK), in particular the opportunities around London’s position as an offshore renminbi market and global financial centre.

The second paper - Part 2: The View from London - examines the dynamics of renminbi internationalization, and whether London could become a key centre for renminbi-denominated project finance.

The third paper - Part 3: Framework for Policy Discussion - identifies a series of 16 policy recommendations detailing how the Chinese and British governments, in collaboration with private banks and investors based in the City of London and worldwide, can effectively support the development of Belt and Road financing in such a way that it expands the use of the renminbi in both the financial and real economies.