The China-based investment company SinoFortone has plans underway to invest over $5 trillion in the UK.
China Invests $5trillion in UK, London to Become Likely Renminbi Hub
The group will put in $2 trillion in the Orthios Eco Parks at Port Talbot and HolyHead in Wales. The project will entail the installation of food kiosks and a waste power plant.
The company will also be involved in the construction of a high scaled amusement park in Ebbsflee, Kent.
Announcement of the plan comes alongside the President Xi of Chinese Jinping’s trip to Britain, which commenced on Monday.
According to the SinoFortone group of companies, construction of the high lavish amusement park is set to start in the year 2017 and it should be complete by 2020.
A Private company; SinoFortone, is a recipient of Chinese state funds for this UK project.
A top official at the People’s Bank of China said that the central bank is anticipating that London will be the international hub for renmibi trading.
Executives in the UK are keen on fostering relations with China given that it is expected that the country will soon be the world’s largest economy as it was in the 19th century.
China is gradually opening up, an indication that the renminbi, the country’s official currency will gain the status of a reserve currency to rival the dollar.
Presently, 40 percent of the world’s foreign exchange trading takes place in London. The UK’s financial capital now wants to grow its position by expanding into offshore trading of the renminbi.
In the past week, London’s dominance in foreign exchange trading has come to the spotlight as a result of reports from TheCityUK financial services lobby, which indicated that London trades the highest number of euros than all European countries and more dollars than New York
There is substantial data-based evidence that London is already attracting renminbi trading. Compared to the US, peak transaction in offshore trading happens at 7 a.m. London time, an indication of a shift from Asia when London traders are ready to start off the day.