Shanghai Stock Exchange, China Financial Futures Exchange and Deutsche Börsetoday agreed on a strategic cooperation to launch a Joint Venture. It has the objective to develop and to market financial instruments based on Chinese underlyings to international investors outside mainland China.
The Venture is designed to support the internationalization of the Chinese currency; and therefore products will be offered in Renminbi. The company will be named ‘China Europe International Exchange’ and will commence market operations in Q4 2015. The initial scope of product development will cover cash market products for market launch.
Shanghai Stock Exchange and Deutsche Börse will each own 40percent and China Financial Futures Exchange the remaining 20 percent of the venture. The new company will be incorporated in Germany. Shanghai Stock Exchange is China’s leading stock market, while China Financial Futures Exchange is China’s only financial derivatives exchange.
Along with China’s integration in the global economic activities, the cross-border use of RMB is increasing rapidly, and RMB internationalization has become an important strategy in the process of the opening-up of China’s economy and financial industry. To promote such strategy, a well-functioning market with offshore investment and trading opportunities is crucial.
“In the context of China’s capital marketliberalization, the offshore trading platform set up by the three exchangeswill further promote the two-way opening up of China’s capital market, enrich the product line of the offshore Renminbi market and accelerate the pace of Renminbi internationalization. The joint venture is a major step forward in the cooperation between our three exchanges, and I believe it will also be rewarding and fruitful,” said Dr. GuiMinjie, Chairman of Shanghai Stock Exchange.
“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. It will help pave the way for further opening up of China’s capital market and contribute to RMB internationalization,”added Zhang Shenfeng, Chairman of China Financial Futures Exchange.
“China has developed into an important player for the global economy. The Joint Venture is meant to support this role further by promoting the internationalization of the Renminbi with capital market products. The Joint Venture is also a result of the excellent relationship amongst the three partners. We feel honored to participate in this new venture,” said Andreas Preuss, Deputy CEO of Deutsche Börse AG in charge of cash and derivatives markets.
China Financial Futures Exchange:
Miao Ye, phone: +86-21-50160885, firstname.lastname@example.org
Heiner Seidel, phone: +49-69-2 11-1 15 00, email@example.com
Shanghai Stock Exchange:
Shanglun Xin, phone: +86-21-68810730, firstname.lastname@example.org