Signing of the Shareholder Agreement during Chinese-German government consultation in Beijing
Shanghai Stock Exchange (SSE), Deutsche Börse Group and China Financial Futures Exchange (CFFEX) today officially founded their joint venture “China Europe International Exchange”. This new marketplace for the trading of RMB-denominated offshore products will be launched on 18 November 2015 under the new brand CEINEX.
The agreement was signed earlier today in Beijing by Gui Minjie, Chairman of Shanghai Stock Exchange, Carsten Kengeter, CEO of Deutsche Börse AG, and Zhang Shenfeng, Chairman of China Financial Futures Exchange, in the presence of the Chinese Premier Li Keqiang and the German Chancellor Angela Merkel. The establishment of CEINEX is an outcome of the Chinese-German high-level financial market dialogue which started in March 2015.
CEINEX will offer investment products based on Chinese underlyings to international investors, starting with cash market products like ETFs and bonds. All cash market instruments will be tradable via Xetra, Deutsche Börse’s established cash marketplace with approximately 200 participants. CEINEX is the first dedicated platform for authorised RMB-denominated trading outside mainland China – offering attractive new trading opportunities to trade Chinese products in an efficient manner to further supporting RMB internationalisation.
The company is based in Frankfurt. The management board comprises senior officers and professionals from the three exchanges.
Gui Minjie, Chairman of SSE, said: “CEINEX is a brand new endeavour of SSE internationalization as well as another crucial milestone in the opening up of the Chinese capital markets. With increasing economic interaction between China and Germany, I have faith that CEINEX will offer more convenient financial services to both countries and enterprises, and meet the demand for RMB securities from overseas investors. It will thus perform a pivotal role in the course of opening up the Chinese capital markets and increasing RMB internationalisation.”
Zhang Shenfeng, Chairman of CFFEX, said: “The foundation of CEINEX is not only a major achievement in strengthening financial cooperation between Germany and China, but also of strategic importance to the further opening-up of China’s capital market and the internationalisation of the RMB. We are proud to embark on a new journey, together with Shanghai Stock Exchange and Deutsche Börse Group, to develop CEINEX into a strong and internationally competitive marketplace.”
Carsten Kengeter, CEO Deutsche Börse AG, added: “CEINEX is a milestone in the strategic cooperation amongst our three exchanges. Its value proposition to ‘trade China in international markets’ is a major step forward in the internationalisation of the RMB. It provides a sound basis for the development of a successful capital market between Europe and China. We are happy to contribute to this excellent development.”