George Osborne, the chancellor, is looking to strengthen foreign currency trade links between London and Hong Kong with the creation of a private-sector forum; it has been reported by the BBC.The forum will look into the creation of RMB financial products, as well as discussing other measures to make London and Hong Kong more compatible for corporate foreign exchange. The new measures will look to establish the UK as the western-hub for the trading of Chinese currency.Osborne's pragmatism comes as little surprise to many currency traders, who have observed the strengthening of the currency in recent months. The relaxation of government controls over the flow of capital and the value of its currency has allowed the yuan to spiral into a real globally traded currency.The introduction of RMB financial products, bond markets and currency trading have seen China's global prosperity boom in recent months, and Hong Kong will be perceived to be as important for global trade as London by many commentators.RMB deposits have ballooned by £60 billion in Hong Kong in only 23 months, and there is now almost ten per cent volume of trade settled in RMB. The bond market has also increased up to £20 billion since trading began only four years ago.Caution has been cast over the move, however, as recent reports have shown slow growth in the area. The economy expanded 8.7 per cent in the fourth quarter from the previous year, which is the smallest growth since June 2009, according to Bloomberg. This left the currency weak, with many spectators predicting a two per cent depreciation against the dollar over the year.Mr Osborne commented on his arrival into Hong Kong that: "London and Hong Kong are uniquely placed to assist in the development of this exciting market."For more information on foreign exchange treasury services and risk management, visit our Corporate FX site