Deutsche Börse announces partnership with Chinese exchanges
Deutsche Börse plans a joint venture with the Shanghai Stock Exchange and China Financial Futures Exchange to develop and market Chinese-based financial instruments to investors outside mainland China.
To be called the China Europe International Exchange, the joint venture will begin market operation in the last quarter of this year, initially with cash market products denominated in Renminbi to support the internationalisation of the Chinese currency.
Shanghai Stock Exchange and Deutsche Börse will each own 40% and China Financial Futures Exchange the remaining 20% of the venture. The new company will be incorporated in Germany. Shanghai is China’s leading exchange and China Financial Futures Exchange its only derivatives exchange.
“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,” said Dr Gui Minjie, chairman of Shanghai Stock Exchange. “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,”
Zhang Shenfeng, chairman of China Financial Futures Exchange, described the venture as “a milestone” for Chinese exchanges and capital markets in general that will help pave the way for further opening up of China’s capital market and contribute to RMB internationalisation. “China has developed into an important player for the global economy,” he said. “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.”