The lawyers maintain that China is taking steps to re-configure its economy to ensure future growth. The country is internationalising its currency via a series of linked developments that ‘imply gradual capital account reform’ and aim to create the vehicle for its increasing outbound investments across the world. These steps are expected to transform China’s economy and significantly impact the world financial system.
Nigel Pridmore, Linklaters capital markets partner, said: ‘The introduction of the CIPS will be a game-changer. For the first time, international banks will have a direct route to an RMB clearing system operated by the People’s Bank of China and supported by its sovereign credit.’
The research also found that China has invested more than $327bn in outbound mergers and acquisitions since 2005.