By Hu Xiaocen | 2012-12-4 | NEWSPAPER EDITION
THE rise of cross-border yuan trade settlement slowed in October, while London outperformed other Asian centers as settlement among European companies grew strongly, Standard Chartered Bank said in a report yesterday.
The index that measures the internationalization of the yuan weakened to 732 in October from 735 in September after growing solidly for most of the year, the UK bank said in the monthly report.
The cross-border yuan settlement in trade was the major driving force behind the rise of the index in recent months but that slowed in October. Other components including offshore yuan deposits and bond issuance also weakened.
However, yuan-denominated settlements climbed in London against the modest pullback seen in Hong Kong and Singapore, said the lender.
Multinational companies in Europe strongly support using the yuan to settle trade.
About 70 percent of the European MNCs said they use or intend to use the yuan in foreign exchange and trade transactions, the bank's survey said.