The UK Chancellor of the Exchequer, Philip Hammond, has formally announced the formation of R5-SHCH Connect, a partnership between R5, the London FinTech leading the digital transformation of Emerging Markets Foreign Exchange trading, and the Shanghai Clearing House, the financial market infrastructure, established to clear and settle China's financial products.
At the conclusion of last week's UK-China Economic and Financial Dialogue a series of financial trade agreements were announced, including R5-SHCH Connect, a financial market infrastructure that connects banks in China directly with the London FX market.
Mr Hammond commented, "As the Renminbi becomes increasingly international, and as China continues to drive forward hugely transformative initiatives, such as the Belt and Road project, I believe that Britain can be China's natural partner in the West for delivering these ambitious projects."
R5-SHCH Connect will launch with 8 Chinese banks connecting to the London FX market, with further onshore Chinese banks being added in early 2018.
Further information - Policy Outcomes of the 9th UK-China Economic and Financial Dialogue