European corporations and institutional investors interested in China welcomed the availability of yuan products and services in London, a new report from the City of London Corp said Monday.

The report, which examined the experiences of firms using yuan for payment and investment, said yuan products and services now available in London have met the demands of the corporations and investors.

Corporate customers highlighted in the report the benefits of adopting the yuan in cross-border trade settlements with China, such as cost-effectiveness and efficiency. Investors also welcomed the opportunity to invest in yuan products in London, although they expressed caution on liquidity and market depth in London's CNH (offshore yuan) market.

"London is already developing as a center for yuan business, and its attractiveness is underpinned by key strengths such as time zone, strong regulatory framework, banking expertise and global FX trading volumes which are well recognized by corporates and investors," said Mark Boleat, policy chairman at the City of London Corp.

He said the use of yuan outside China had grown significantly in recent years.

"Understanding the perspectives of current and potential users of yuan products and services will help to develop the services offered to these firms, grow the liquidity pool in London and contribute to the international use of the yuan outside China's mainland." Boleat added.