Deutsche Börse has teamed up with the Shanghai Stock Exchange and the China Financial Futures Exchange to launch a joint initiative, the China Europe International Exchange.
The partnership intends to develop financial instruments based on Chinese underlyings, and to market them to international investors.
Products will be offered in renminbi, thereby promoting the internationalisation of the currency.
The initial scope of the project will cover cash markets products for market launch, and the exchange is scheduled to begin market operations in Q4 2015.
Gui Minjie, chairman of Shanghai Stock Exchange, said: “In the context of China’s capital market liberalisation, the offshore trading platform set up by the three exchanges will further promote the two-way opening up of China’s capital market, enrich the product line of the offshore RMB market and accelerate the pace of Renminbi internationalisation.”
Andreas Preuss, deputy CEO of Deutsche Börse AG, added: “China has developed into an important player for the global economy. The joint venture is meant to support this role further by promoting the internationalisation of the RMB with capital market products. The joint venture is also a result of the excellent relationship amongst the three partners. We feel honoured to participate.”
Zhang Shenfeng, chairman of China Financial Futures Exchange, also commented: “The establishment of the RMB asset trading platform in Frankfurt by Shanghai Stock Exchange, China Financial Futures Exchange and Deutsche Börse is a milestone for Chinese exchanges and capital market in general.”
The move comes as a reaction to the rapid growth in use of the RMB worldwide, and its internationalisation as a strategy to open China’s economy and financial industry.
Deutsche Börse and the Shanghai Stock Exchange will each hold a 40 percent stake, and China Financial Futures Exchange will hold the remaining 20 percent.
.jpg)