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.”
CEINEX – China Europe International Exchange AG – offers investment products based on Chinese underlyings to international investors, starting with cash market products. CEINEX is the first and only dedicated platform for authorized RMB-denominated trading outside mainland China – offering attractive new trading opportunities to trade China in a most efficient manner, supporting RMB internationalization effectively.
It is a joint venture by Shanghai Stock Exchange, Deutsche Börse and China Financial Futures Exchange. The new market place was launched in November 2015.
Shanghai Stock Exchange (SSE), founded in 1990, is a membership institution directly governed by the China Securities Regulatory Commission (CSRC). The SSE bases its development on the principle of “legislation, supervision, self-regulation and standardisation” to create a transparent, open, safe and efficient marketplace. The SSE has become the preeminent stock market in mainland China by number of listed companies, market capitalisation, turnover in equities and treasury bonds. As of today, 1,071 shares were listed on SSE with a total market capitalisation of RMB 28.9 trillion. SSE is fully committed to the goal of the state-owned industrial enterprises reform and developing Shanghai into an international financial centre with great confidence.
Deutsche Börse Group is one of the world’s leading service providers for securities and derivatives markets with products and services offered for issuers, investors, intermediaries and data vendors. The Group covers the entire process chain from trading through clearing to settlement and securities custody, as well as market data, indices and analytics.
Deutsche Börse Group is also a global innovator in financial markets technology, including the industry leading T7 trading platform and C7 clearing system.
With the approval of the State Council and the authorisation of China Securities Regulatory Commission (CSRC), China Financial Futures Exchange (CFFEX) was jointly founded by Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange on 8 September 2006 in Shanghai. Having successfully launched five products, i.e. CSI 300 stock index futures, SSE 50 stock index futures, CSI 500 stock index futures, 5-year government bond futures and 10-year government bond futures, CFFEX is now working to further expand its product portfolio to cover stock index options, foreign exchange futures and interest rate futures.