Four partners have agreed to provide a framework to internationalise the German and Chinese financial markets. Tianjin Property Rights Exchange (TPRE), State-owned Assets Supervision and Administration Commission (SASAC) of Tianjin Municipal People’s Government, the German Agency for Technical Co-operation (GTZ) and Deutsche Börse Group signed a four-party Co-operation Term Sheet (CTS) on Tuesday in Tianjin.
“Property rights exchanges are crucial for China’s future capital flows. They are fundamental for assets reform and the platform for accumulative capital and increment capital, bridges for unions of high-tech industry and traditional industry, channels for foreign M&A and foreign capital,” says Gao Luan, director of TPRE and chairman of the executive council of North United Assets & Equities Market (NUAEM).
The four parties signing the Co-operation Term Sheet (CTS) will also work together in the areas of management, regulation and operation to assist TPRE in its transformation project of providing an efficient capital market infrastructure. TPRE is one of the three national Chinese institutions appointed by SASAC for the transfer of ownership of state-owned enterprises under control of the Central Chinese Government. TPRE supports assets
transfers throughout China.
“We are proud to be able to announce an alliance with TPRE and Tianjin SASAC. This cooperation agreement will be an important step towards bringing European and Chinese market participants closer together,” says Rainer Riess, managing director stock market business development. Providing information for Chinese enterprises aiming at entering European markets and financing their growth activities via European stock market is also a major aspect of this four-party co-operation project, to be formally launched on Tuesday in Tianjin.
“We will be very happy to be able to join TPRE and Tianjin government in their endeavour to enhance the Chinese capital market, which is vital to the continuous development of Chinese economy,” adds Dr. Ulrich Becker, managing director corporate development and also responsible for development in Asia. “Deutsche Börse is one of the largest exchange
organisations in the world whose activities cover the entire securities processing chain, from trading, clearing, settlement/custody to index, data dissemination and technology. We see China as one of the most important growth areas and are committed to accompany this growth,” he continues.
Overall, the signing of the CTS by the four partners heralds a step foward in the Sino-German Technical Co-operation Program for the development of capital markets in China. In a parallel event the Tianjin mayor Dai Xianglong and the minister of economics of the German State of Hesse, Dr. Alois Rhiel, as well as the deputy mayor of the City of Frankfurt, Horst Hemzal, will sign a Co-operation Agreement between the city of Frankfurt, the State of Hesse and Tianjin. This agreement encompasses a wider co-operation in the fields of finance, fairs and exhibitions, and airport management and development.