China Construction Bank to apply for UK branch license -source

LONDON (Reuters) - China Construction Bank is to apply for a branch license to operate in London following an easing in UK rules on how overseas banks can be set up, a person familiar with the matter said on Monday.

Britain said in October it would ease its banking rules for any non-European bank that wants to set up investment banking operations in London, rather than the more tightly supervised subsidiaries it had demanded in the wake of the financial crisis.

The move was seen as particularly aimed at Chinese banks, who are looking to expand their European operations. London is attempting to become one of the leading hubs for yuan transactions.

(Reporting by Simon Jessop; Editing by Steve Slater and Matt Scuffham)