UK-China ties cemented with bond issuance

He said the bond issuance signaled the renminbi's potential as a future reserve currency and a step forward in renminbi internationalization.

According to a statement by the British Treasury, its order book on the day of the issuance closed with 85 orders totaling 5.8 billion yuan. Bank of China, HSBC and Standard Chartered acted as joint lead managers.

This obvious demand fully demonstrates the international market's confidence in the renminbi and in China's economic prospects.

After more than three decades of fast growth since its reform and opening-up, China has become the world's second-largest economy and the third-largest outbound direct investor. Renminbi has become the world's seventh-largest payment currency.

The pace of the renminbi's internationalization has picked up over the past 12 months, with new currency swap agreements signed and renminbi investment quotas agreed in several financial centers.

If Britain's sovereign renminbi bond can play an exemplary role in the world, it will further speed up the currency's internationalization.

For both sides the issuance represents a significant boost for corporate, trade, economic and diplomatic links between the countries.

Bilateral trade between China and the UK hit a record high last year, much higher than the increase in trade between China and the EU. Bilateral trade this year is expected to top $80 billion.

Chinese investment in Britain has been remarkable over the past three years, worth $18 billion, more than the total investment over the previous three decades.

Property has become the new hot spot for Chinese investment money. In June, China Life Insurance Co, the country's largest insurer, announced it was part of a consortium that had bought a 32-story building in London's high-end business district Canary Wharf, for 795 million pounds ($1.35 billion).

London to lure bigger share of floats	China Development Bank issues RMB bonds in London