London The Chinese Financial Hub

London The Chinese Financial Hub.

Chancellor George Osborne has confirmed investment rules will be loosened to more freely allow trading in Chinese currency exchange in London.

A positive spin off will allow investors to trade in Chinese currency Yuan which then means investors can automatically invest in Chinese stocks and bonds.

Currently, all such trades move through Hong Kong and this greater freedom will allow investor capital flows in China and actually the other way.

Discussions have already taken place between Chinese banks and the UK banking regulator, the Prudential Regulatory Authority, which will allow China to establish commercial banking operations in the UK.

Comment

The natural flow of wealth that was taken out of the far east starting back in the 18^th century when the British Navy and merchant navy via the East India Company is gradually flowing back.

Britain will be served well by building greater ties with emerging nations and to maintain London as the top financial centre off the globe.

We actually see this long term bet for future generations as a way to stabilise World markets and have less reliance of US $ trading, less reliance on the buoyancy of the US economy which underpins the confidence in the dollar and moves China to where it is heading as the largest global power on the planet.