May 22, 2014 / 10:31 AM / 4 years ago

China Construction Bank gets board approval for London branch

HONG KONG, May 22 (Reuters) - China Construction Bank Ltd , the country’s second-biggest bank, said on Thursday it has secured board approval to set up a branch in London.

Chinese banks have been gradually expanding their overseas footprints, which is seen facilitating the internationalisation of China’s currency, the yuan.

London accounts for 62 percent of yuan trades outside China and Hong Kong, according to data from financial services provider SWIFT.

The board approval comes after Britain relaxed rules to help overseas banks set up branches in the country. It also came on the heels of moves to make London a leading global hub for yuan trading.

The London expansion is the latest move overseas by CCB. The bank last year agreed to buy a 72 percent stake in a Brazil’s Banco Industrial e Comercial SA for about $720 million.

CCB rival Bank of China Ltd has a London branch.

Reporting by Denny Thomas and Elzio Barreto; Editing by Matt Driskill

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