China'S Efforts To Promote RMB Internationalization Will Not Be Blocked By Europe.

After the referendum in Britain, market watchers and Chinese domestic media worry that the status of the offshore renminbi center in London will be threatened and may hamper China's efforts to promote the internationalization of RMB.

However, after the dust settled, some bankers and analysts believe that this pessimistic view may be overdone.

This does not mean that Britain will not have any impact on Europe, but it may encourage China to cultivate more than one RMB trading center in the European continent, thereby widening the scope of RMB's globalization.

Analysts point out that London will not lose its position as the main offshore RMB business centre because of the referendum retreat to Europe, but the result of this referendum is expected to promote the formation of several offshore RMB business centers in the EU, thus contributing to the internationalization of the renminbi.

Hang Seng Bank global bank and

Feng Xiaozhong, Andrew Fung, said: "we expect London to remain the largest foreign exchange trading center in the world, but in the UK, some other financial services may face the risk of moving to other countries."

Feng Xiaozhong also said that foreign exchange trading is currently a key part of RMB internationalization.

London in

Internationalization plays an important role.

In March, London became the second largest offshore RMB settlement center in the world, according to SWI.T.

Over the past five years, China's big banks have set up large Renminbi trading and settlement infrastructure in London. In June, China issued the first Renminbi denominated sovereign debt in London.

According to the London Stock Exchange, more than 50 RMB denominated bonds were issued in London in 2016 alone, with more circulation than other financial centres outside the Greater China region.

Analysts pointed out that Britain's departure from Europe could prompt China to carry out its operations.

To establish more offshore RMB centers in the European Union.

"Frankfurt, Paris and Zurich are all very keen on offshore RMB business," said Ngan Kim Man, deputy director of China Everbright Bank, Hongkong branch.

Deutsche Boerse Group has agreed to form a joint venture with the Shanghai stock exchange, which many believe is a major change in Frankfurt.

Andrew Fung, head of global banking and marketing at Hang Seng Bank, also said Paris and Frankfurt had an advantage, Fung added that Dublin was also good.

Dublin has lower taxes, Paris has a good financial infrastructure, and the European Central Bank (ECB) is settled in Frankfurt.

Raymond, a senior economist at ANZ in Hongkong, said: "for the internationalization of the RMB, Britain's departure from Europe may not be a bad thing, and it may create new space for the internationalization of RMB."

Yeung added that the depreciation of UK asset prices could further encourage Chinese banks and enterprises to invest in the UK.