London - the western hub for Renminbi issuance
Listing RMB Bonds in London
As the leading international financial market and the centre for global currency trading, London is well placed to develop as the western hub for international renminbi trading. London Stock Exchange, one of world’s premier listing venues for corporate bonds, offers issuers of renminbi securities access to a broad base of international investors.
London Stock Exchange provides an excellent opportunity for debt issuers to access one of the largest pools of capital and to increase the global profile of their issue. Issuers can choose to admit securities to trading on the Main Market or the Professional Securities Market.
The Main Market
The Main Market is our flagship market and provides access to Europe’s deepest pool of capital. Listing on the Main Market exposes your debt securities to a wide audience of financial market experts.
The value of debt securities admitted to the Main Market exceeds £1.65 trillion, which accounts for almost a quarter of the £6 trillion total of all securities listed on this market. There are more than 14,500 debt securities from all over the world listed on the Main Market, including a number of sovereign issues. It is the listing venue of choice for all UK government issues.
The Main Market’s status as a listed and regulated market offers high profile and flexibility both to issuers and holders of debt finance. Its focus, therefore, is on the broadest range of institutional and retail investors.
The Professional Securities Market
The Professional Securities Market provides a more flexible alternative to the requirements regarding denomination and financial information compared to other markets regulated in the context of the EU directives, and is aimed at issuers targeting professional investors. It is an exchange regulated market that admits listed securities. This gives issuers on the market substantial flexibility and offers a favourable tax regime – for example, “quoted Eurobond” status.
On the Professional Securities Market, debt securities, regardless of the denomination, can be admitted under a wholesale regime. By following this route to listing, companies are able to admit any type of debt security.
There are a wide range of benefits for issuers, including a less onerous listing process; the ability to submit listing particulars as defined in Chapter 4 of the UKLA's Listing Rules; also, issuers do not need to submit accounts according to International Financial Reporting Standards (IFRS); instead, local GAAP suffices.
List of RMB-denominated bonds
A number of issuers have already listed renminbi-denominated bonds on London Stock Exchange including BP Capital Markets, HSBC, Lloyds Bank and Morgan Stanley.