Deutsche Boerse AG and two Chinese exchanges are establishing a joint venture called China Europe International Exchange to offer yuan products, with the aim to provide European investors with bigger access to the world’s second-largest economy.
As Bloomberg reported, the deal between German markets operator, Shanghai Stock Exchange and China Financial Futures Exchange will set up a Frankfurt-based venue for investors based outside China to trade yuan-denominated securities.
The Shanghai Stock Exchange and Deutsche Boerse will each own 40 percent of the new venture. CFFE will hold the remaining 20 percent stake.
The venture will start offering cash instruments in the fourth quarter.
China intends to achieve greater internationalization of the renminbi with the intention of making it a reserve currency. In the meantime, global investors are ready to pour cash into one of the world’s largest and fastest growing economies.
“It will help pave the way for further opening up of China’s capital market and contribute to renminbi internationalization,” Zhang Shenfeng, chairman of China Financial Futures Exchange, said in the statement.
