CEINEX Launched with RMB Products’ Debut
China Europe International Exchange (CEINEX) was launched in Frankfurt, the financial capital of Germany, on November 18, as a joint venture of the Shanghai Stock Exchange (SSE), Deutsche Borse Group and the China Financial Futures Exchange (CFFEX).
The opening of the new exchange marked the official operation of a European offshore RMB-denominated securities market co-built by China and Germany. This is both an important step in RMB internationalization and a milestone of the internationalization strategy of the SSE and the CFFEX.
At 9:00 a.m. CET, Co-CEO Chen Han and Executive Director Wu Jianhong, both CEINEX executive board members, opened the new market place with a centuries-old opening bell ringing at the Frankfurt Stock Exchange. The launch ceremony took place in the presence of more than 80 government and trade representatives from China and Germany. Shi Mingde, the Chinese ambassador to Germany, Huang Hongyuan, SSE President, and Carsten Kengeter, CEO of Deutsche Borse Group, addressed the opening ceremony and extended their congratulations on the listing of the first products on the CEINEX.
At market launch, the CEINEX offered ETFs and a broad range of RMB-denominated bonds. Bank of China International and China Construction Bank International respectively partnered with Commerzbank to issue a RMB-denominated ETF product to trace A-Share Index in China. In addition, a RMB-denominated financial bond issued by Bank of China was offered at the launch. Besides, 12 ETFs related to the Chinese market and 180-plus RMB-denominated bonds listed on Deutsche Borse will be transferred onto the trading platform of the CEINEX to ensure sustained liquidity.
The original intention of the establishment of the CEINEX was to offer products and services with underlying RMB-denominated assets to European and worldwide investors. The CEINEX will mainly offer securities spot products denominated and settled in RMB at the beginning of its running, before the time is ripe for listing financial derivatives.
Chen Han said, “We aim to steadily expand our product offering to further increase the attractiveness of the CEINEX for international investors, and we’re very pleased to launch all-round cooperation with market participants to promote the development of offshore RMB products in Europe.”
Source: Shanghai Stock Exchange