The Hong Kong Monetary Authority and the UK Treasury on Monday announced the launch of a joint private-sector forum to enhance cooperation between Hong Kong and London on the development of offshore renminbi business.

The forum will focus on exploring cooperation by enhancing linkages between Hong Kong and London, specifically regarding clearing and settlement systems, market liquidity and the development of new renminbi-denominated financial products.

It will comprise representatives from both Hong Kong and London banks, including HSBC, Standard Chartered, Bank of China, Deutsche Bank and Barclays, and may invite other institutions' representatives as appropriate.

"With the support of the Central Government, Hong Kong has developed into a global hub for offshore renminbi business. Banks and financial institutions in London are most welcome to make good use of Hong Kong's offshore renminbi platform," said Donald Tsang, chief executive of Hong Kong Special Administrative Region government.

The forum will meet twice a year, with the first meeting to be held in Hong Kong in May. It was set up following last September's landmark accord in which the UK and the Chinese government for the first time welcomed the development of the offshore RMB market in London.