Shanghai Stock Exchange (SSE), Deutsche Börse and the China Financial Futures Exchange (CFFEX) have joined forces to form the China Europe Intercontinental Exchange (CEINEX).
The three exchanges signed a shareholder agreement in government consultation between China and Germany in Beijing, and will form a new marketplace for the trading of RMB-denominated offshore products.
CEINEX will offer investment products to international investors, based on Chinese underlyings. It will start with cash market products such as exchange traded funds and bonds, with all cash market instruments tradable through Deutsche Börse’s cash marketplace Xetra.
The platform is the first dedicated marketplace for authorised RMB-denominated trading outside of China. It intends to provide new trading opportunities to Chinese products efficiently, supporting the internationalisation of the renminbi.
Gui Minjie, chairman of SSE, said: “CEINEX is a brand new endeavour of SSE internationalisation as well as another crucial milestone in the opening up of the Chinese capital markets. With increasing economic interaction between China and Germany, I have faith that CEINEX will offer more convenient financial services to both countries and enterprises, and meet the demand for RMB securities from overseas investors.”
Chairman of CFFEX Zhang Shenfeng added: “The foundation of CEINEX is not only a major achievement in strengthening financial cooperation between Germany and China, but also of strategic importance to the further opening-up of China’s capital market and the internationalisation of the RMB.”
Carsten Kengeter, CEO of Deutsche Börse, said: “CEINEX is a milestone in the strategic cooperation amongst our three exchange.”
He added: “It provides a sound basis for the development of a successful capital market between Europe and China. We are happy to contribute to this excellent development.”
CEINEX is scheduled to launch on 18 November. It will be based in Frankfurt, with a management board formed of senior officers from the three participating exchanges.
