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China to give London £8.2 billion RQFII quota - governments

BEIJING (Reuters) - China is set to grant London-based investors the right to use their yuan to buy up to 80 billion yuan (8.2 billion pounds) worth of mainland stocks, bonds and money market instruments, the Chinese and British governments said on Tuesday.

The approval for London's right to join the Renminbi Qualified Foreign Institutional Investor plan, also known as the RQFII, marks the first time the scheme has expanded beyond Hong Kong.

In return, the British government has agreed to start talks to allow Chinese banks to set up wholesale units in the United Kingdom, the two governments said in a statement.

(Reporting by Koh Gui Qing)