CEINEX Gets off to a Sound Start

18 May 2016


Marking the six-month operation of China Europe International Exchange (CEINEX), the forum themed “Cooperation and Development of Global Financial Market under Backdrop of RMB Internationalization” sponsored by CEINEX was held at the trading floor of the Shanghai Stock Exchange (SSE) on May 18, 2016. Officials of the SSE, the China Financial Futures Exchange (CFFEX) and CEINEX delivered speeches at the forum.

CEINEX, an exchange jointly-established by the SSE, Deutsche Borse Group and the CFFEX in Frankfurt, Germany and the first nationwide joint-venture trading platform established by the domestic exchange in a foreign country, aims to build a trading platform of offshore RMB-denominated financial instruments in Europe. Since its opening in November 2015, CEINEX has got off to a good start with a continuously sound market growth in trading volume, the participation of more institutions and the rudimentary functioning of the platform’s role.

About 200 products, including ETFs and bonds for the most part, haven been traded on CEINEX since its official running. By the end of April 2016, the total trading volume of the products sold on CEINEX had reached EUR0.337 billion (about RMB2.4 billlion), with the daily average trading volume up to about EUR3 million (about RMB21.50 million); the trading volume of ETFs had reached about EUR0.333 billion (about RMB2.378 billion), accounting for about 98% of the total. Noticeably, the RMB-denominated products had been accepted by the market, with its trading volume up to RMB0.218 billion, accounting for 9.1% of the total. The brisk transactions of the CBK CCBI RQFII Money Market UCITS ETF, the RMB-denominated product co-issued by Commerzbank and CCB International, have registered growing interest in the RMB-denominated products in the market.

Next, CEINEX will continuously diversify spot products and propel the research in and preparations for derivatives. With regard to the former, apart from consistently perfecting the ETF products system and boosting more financial institutions and enterprises worldwide to issue RMB-denominated bonds on CEINEX, priority will also be given to attract China’s quality enterprises to go public on CEINEX, fuel the cooperation between Sino-German advanced manufacturing industries as well as the transformation and upgrading of China’s manufacturing industry, and serve the “2025: Made in China” strategy and the “(Silk Road Economic) Belt and (the 21st-Century Maritime Silk) Road” initiative. As regards the latter, CEINEX will, according to the market demands, provide portfolio allocation instruments and risk management ones of Chinese financial assets for international investors by attaching importance to developing futures and option products based on A-share ETFs and A-share market indices.

The forum drew nearly 200 guests from a total of 127 institutions covering securities, fund and futures companies and listed companies.

Source: Shanghai Stock Exchange