U.K. finance minister George Osborne will on Tuesday roll out the red carpet for Chinese banks looking to expand in London, offering to break down regulatory barriers in a bid to reinforce the City's position as a global renminbi hub.
In a major diplomatic initiative, the chancellor is expected to offer the prospect of special terms to China's state-owned banks as part of his "personal mission" to make London a significant Chinese offshore banking center.
The chancellor signaled his intent on Monday in Beijing, when he said: "A great nation like China should have a global currency." China, he said, should seek to develop the renminbi "through the international center of finance: London".
(Read more: UK's Osborne woos China with shared investment)
The City of London is already the world's dominant center for renminbi foreign exchange trading, which amounted to a daily $5.3 trillion at the last count six months ago, according to the Bank for International Settlements.