Renminbi transactions developing rapidly in London

The first Chinese mainland bank to issue a bond in yuan in London was the Industrial and Commercial Bank of China, which did so in November 2013. The 2 billion yuan deal was oversubscribed.

Fees to businesses have reduced, compared to some years ago, a trend which Boleat says will continue.

"This will continue along with the growth in trade with China," he said.

Boleat forecasted the Britain-China bilateral trade to grow rapidly over the next 10 years.

"We expect that the financial reform in China will lead to greater integration between the financial markets in China and the rest of the world, particularly London," he said.

Boleat said reforms announced at the Third Plenum of the 18th Central Committee of the Communist Party of China were important for London as a financial center.

He said London expects more Chinese banks and institutions, as well as more Chinese investment, whether it is buying commercial property or investing in businesses like Thames Water and Heathrow Airport.

The announcement of the swap line between the People's Bank of China, or the Chinese central bank, and Britain's central bank Bank of England in 2013 was really important, said Boleat.

"In China it is very symbolic, showing the importance of London as an offshore center but it also gives reassurance, to the banks in particular, that if there is a shortage of liquidity then the central banks in either country will make up that liquidity," he said.

As the renminbi becomes more important, other markets will develop, but Boleat said London would aim to keep its paramountcy in Europe. "A lot of that business can be cleared through London," he said.