When senior officials from the City of London and Shanghai's Huangpu District met this week at the 2025 RMB Internationalisation Forum in Shanghai, the discussions centered less on rhetoric and more on operational alignment. Against the backdrop of growing geopolitical and monetary bifurcation, the offshore renminbi (CNH) has quietly re-emerged as a relevant piece in the liquidity puzzle for global financial institutions.

Hosted by the City of London Corporation and held at the Shanghai Clearing House, the event marked the domestic launch of the London RMB Business Annual Report 2024, which paints a data-rich portrait of how London's offshore RMB ecosystem is evolving. The forum brought together over 20 institutions, including the People's Bank of China (Europe Office), Standard Chartered (China), China Construction Bank (Shanghai Branch), and Shanghai Clearing House.

London's Role as a RMB Infrastructure Node

The report—titled Unlocking RMB Potential: Key Findings from the London Market—reveals that 2024 saw steady growth in London's RMB-denominated FX, credit, clearing, and settlement activities. Specifically, FX turnover involving RMB rose by 14% year-on-year, with a notable rise in CNH liquidity around end-of-quarter corporate hedging cycles.

For asset managers, banks, and fintechs operating in Europe, London remains the most structured offshore RMB environment outside of Asia. “London's appeal lies not only in its regulatory transparency and depth of talent,” said Chris Hayward, Policy Chairman of the City of London Corporation, “but also in its multi-asset infrastructure—from metals to insurance to FX—that supports broader RMB use.”

Notably, the report identifies a shift in usage patterns: European corporates are increasingly using RMB not only for China-bound trade settlements, but also for intra-Asia trade financing. London's established legal system and the extraterritorial nature of CNH provide risk-sensitive corporates with a neutral operating platform amid a fragmented global payments landscape.

For Treasurers and Investors, the RMB's Use Case is Changing

For foreign corporate treasurers, the renewed RMB interest is less about ideology and more about resilience. With interest rate differentials narrowing and SWIFT-based settlement scrutiny intensifying, the ability to run diversified payment corridors—especially through London and Hong Kong—has become a tactical advantage.

Shanghai's officials are positioning Huangpu District as a key onshore counterpart. Home to the Bund Financial Cluster and major clearing institutions, the district has become a sandbox for China's next phase of financial opening. Local government leaders highlighted ongoing reforms to streamline foreign participation in equity investment and fintech infrastructure, particularly around payment connectivity and data standards.

“Shanghai is building a highland for RMB asset pricing and cross-border clearing,” said Xu Huili, Mayor of Huangpu District. “We are exploring deeper alignment with international standards and platforms.”

This message resonates with institutions watching China's financial liberalisation evolve in phases rather than in sudden overhauls. For example, Shanghai Clearing House's engagement with London-based institutions has included post-trade dialogue on interest rate swaps, FX netting, and payment-versus-payment (PvP) mechanisms.

Beyond Symbolism: Toward Operational Interoperability

More than a diplomatic gesture, the dual-city engagement hints at a renewed emphasis on technical interoperability. As cross-border RMB usage matures, the emphasis is shifting from "if" to "how"—how to manage CNH exposure, how to structure RMB-denominated instruments that qualify for ESG mandates, and how to link DLT-based payment rails to clearing mechanisms compliant with global audit norms.

Speaking at the forum, Ma Jianyang, Chairman of Shanghai Clearing House, underscored the need to build inter-market hubs that “consolidate global trust and liquidity foundations” for the RMB. He emphasized that RMB's offshore evolution depends not only on capital account convertibility, but also on professional intermediaries'ability to reconcile legal frameworks, liquidity timing, and counterparty risk.

His comments come amid growing experimentation with cross-border digital currency pilots, as well as the integration of real-time payment platforms between Asia and Europe.

Practical Implications for Global Financial Institutions

For global institutions with Asia-facing exposures—whether banks, asset servicers, or legal advisory firms—these developments offer a number of concrete implications:

Liquidity Strategy:CNH liquidity remains shallow in some time zones; access through London helps smooth end-of-day hedging and reduce basis costs.

Regulatory Positioning:Joint reports such as this one allow legal teams to track evolving risk jurisdictions and align documentation, particularly for syndicated loans or structured notes involving RMB.

Operational Efficiency:Interoperability between Shanghai and London clearing systems can support lower friction for cross-border cash pooling and FX settlements.

As global finance shifts toward more regional architectures, London's RMB role is becoming less about headline numbers and more about quiet utility. For institutions navigating complex sanctions landscapes, capital controls, and geopolitical overlays, the RMB's path forward is less linear—but potentially more sustainable—than ever.

What Comes Next

The City of London Corporation has signaled intent to deepen cooperation in fintech, green finance, and asset management. Future reports are expected to provide comparative analytics between London, Singapore, and Hong Kong RMB centers, while Chinese regulators are exploring multilateral frameworks to facilitate capital mobility without sacrificing control.

From a foreign financial institution's standpoint, the RMB is no longer an "emerging currency story"—it is a currency of architecture. Its strategic value now lies in whether your systems, people, and legal frameworks are ready to handle it—not just trade it.