China Foreign Exchange Trade System (CFETS) and Deutsche Börse today entered into a strategic cooperation agreement to connect the respective markets and foster product innovation. The cooperation agreement was signed by Sun Jie, Executive Vice President of CFETS, and Carsten Kengeter, CEO of Deutsche Börse AG, in the presence of the Chinese Prime Minister Li Keqiang and the German Chancellor Angela Merkel. The signing ceremony took place in Beijing during the Chinese-German government consultation.
Both partners agreed to establish a new joint venture in Germany in which each side will hold a 50 per cent ownership. The new company will pursue three main objectives: first, to enable and support China interbank market participants to trade Deutsche Börse’s cash and derivatives products; second, to enable and support Deutsche Börse market participants to trade China interbank market products; and third, to develop and offer RMB-denominated interest rate and exchange rate (FX) products outside mainland China. Based on the cooperation agreement, both parties will interact closely with each other and advance step by step, striving for the implementation of the cooperation objectives as soon as possible.
Pei Chuanzhi, President of CFETS, said: “Our cooperation will be mutually beneficial to both organisations and facilitate the opening-up of the financial markets of China and Europe. The joint venture will meet the demands of the Sino and European real economies to hedge their interest rate and foreign exchange risks, promote bilateral economic and trading activities, facilitate the development of the European offshore renminbi market, and help to further promote RMB internationalisation.”
Carsten Kengeter, CEO of Deutsche Börse AG, added: “We are very pleased to enter into this strategic partnership with CFETS. Based on the strength of both organisations, our joint venture will contribute to the continued growth of our markets and economies. Further, it will also strengthen the relevance of Europe as an offshore renminbi hub and be mutually beneficial for our organisations, and importantly, for our customers.”