London beats Singapore in yuan business

London surpassed Singapore in April for the first time as a bigger offshore center of the Chinese yuan, a private report showed Thursday.

London's market share in the Standard Chartered Renminbi Globalization Index, a measure of yuan-based business activity worldwide, surpassed that of Singapore for the first time since December 2011, the British lender said in a report.

"London has maintained its recent lead over Singapore in terms of cross-border payments, and its yuan foreign exchange turnover has also been growing at a faster pace of late, reflecting London's ability to capture Europe's rising demand for the currency," Standard Chartered said in the report.

The lender also said the recent launch of yuan clearing services in Singapore will boost the city state's competitiveness in yuan business.

The index rose 3.7 percent from March to 925 in April, a new record high, supported by expanding pool of dim sum bonds and certificate of deposits.

However it is posed for a weaker reading in May due to slowed debt issuance. Bond issuance is expected to rebound in June and July on the Chinese government's sale, according to the report.