Deutsche Boerse has teamed up with the Shanghai Stock Exchange to launch a new venue offering cash market products denominated in Renminbi (RMB).
A joint venture between Deutsche Boerse, Shanghai and the China Financial Futures Exchange, the China Europe International Exchange is expected to launch in the final quarter of 2015.
The new exchange is intended to support the internationalisation of the Chinese currency and will offer all products in RMB. It will be based in Frankfurt and initially offer cash market products.
Deutsche Boerse said that cross-border use of RMB is growing rapidly and forms a core part of opening up China’s economy and financial markets and, as such, it identified a need for a well functioning market with offshore investment and trading opportunities.
“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,” said Andreas Preuss, deputy CEO of Deutsche Boerse. “The joint venture is also a result of the excellent relationship amongst the three partners.”
Shanghai and Deutsche Boerse will each own 40% of the new venture, while the China Financial Futures Exchange will take a 20% stake.