OREANDA-NEWS. August 21, 2014. Mr. Jiang Chaoliang, Chairman of Agricultural Bank of China Limited (“ABC”), and Mr. Chris Gibson-Smith, Chairman of London Stock Exchange Group ("LSEG"), entered into a cross-border RMB strategic cooperation MOU in London, the UK. Both sides aim to strengthen cross-border RMB product innovation and cooperation, and bilateral business and personnel exchanges, promote the development of London offshore RMB market, and better support RMB and Chinese enterprises to enter Europe.

ABC Chairman Jiang Chaoliang said that, "the MOU once again demonstrates the great importance ABC attaches to the European market. The collaboration between ABC and LSEG will not only boost our respective international competitiveness, but also promote the development of London offshore RMB market, and help Chinese enterprises enter and expand in Europe. We believe this bilateral cooperation will be another achievement in the financial sector between the two countries.”

LSEG Chairman Chris Gibson-Smith expressed that, "we're very glad to sign such an important strategic MOU with ABC. The impressive economic growth of China has laid a solid foundation for Chinese enterprises to enter the European market. We will join hands with ABC to fully support the governments of our two countries to develop the offshore RMB market in London through innovation and cooperation.”

Europe is the second largest region for cross-border RMB business, only trailing Asia, as well as a major market for ABC's internationalization strategy. ABC has established operating institutions in London and Frankfurt – the two international financial centers, and plans to expand its European presence to Luxemburg and Russia, so as to better promote the cross-border use of RMB and help enterprises "go global".

The cross-border RMB services launched by ABC to Europe are vividly called the "RMB Express on the New Silk Road". In 2013, ABC rolled out the cross-border RMB delayed clearing service first in the UK, which marked a significant step in building offshore RMB centers in London and other European regions. In March 2014, ABC held cross-border RMB international forums in London and Frankfurt, generating a "coolest RMB" cyclone across Europe. In May, ABC became the first Chinese bank that issued RMB bonds on the European continent by successfully issuing RMB1.2 billion Rhine bonds in Germany, which were listed on the local market. Following its issue of the first RMB-denominated Formosa bonds in Taiwan in 2013, this issue was also the first of its kind by a Chinese bank.

At the end of March 2014, the total assets of ABC were RMB15.32 trillion, up 5.22% over the end of the previous year. In the first quarter, it realized a net profit of RMB53.522 billion, up 13.75% year on year. LSEG is a world-leading diversified and comprehensive stock exchange group, with the most time-honored stock exchange in the world and the widest stock business in Europe. The total market capitalization of the companies listed on LSE has exceeded USD7 trillion so far.

Since its launch of cross-border RMB services in 2009, ABC has established a cross-border RMB products system integrating clearing, settlement, trade finance, treasury operation, cash management, agency investment in bond markets and RQFII fund custody. It has opened over 190 RMB clearing accounts for its peers worldwide, and seen its services cover more than 100 countries and regions. At the end of May 2014, the aggregate volume of cross-border RMB transactions completed by ABC exceeded RMB2.6 trillion.