China | New Sino-German exchange opens with launch of 2 yuan-based ETFs

New Sino-German exchange opens with launch of 2 yuan-based ETFs

November 18, 2015 6:08 PM (UTC+8)

 

A Sino-German joint venture named China Europe International Exchange (CEINEX) was launched in Frankfurt, Germany Wednesday, kicking off the trading of yuan-denominated exchange traded funds, reported Chinese state news agency Xinhua.

Chen Han and Wu Jianhong, the executive board members of CEINEX, opened the new market place for RMB-denominated ETFs and bonds by ringing the bell on the trading floor of the Frankfurt Stock Exchange.

The executive board members of CEINEX, Chen Han (R) and Wu Jianhong (L) rang the bell at the trading floor of the Frankfurt Stock Exchange and opened the new market place for RMB-denominated ETFs and bonds in Frankfurt , Germany, Nov. 18, 2015.(Xinhua/Shen Zhonghao)
The executive board members of CEINEX, Chen Han (R) and Wu Jianhong (L) rang the bell at the trading floor of the Frankfurt Stock Exchange and opened the new market place for RMB-denominated ETFs and bonds in Frankfurt , Germany, Nov. 18, 2015.(Xinhua/Shen Zhonghao)

CEINEX offers ETFs based on Chinese mainland’s underlying assets and a broad range of RMB-denominated bonds. Commerzbank in partnership with Bank of China International and China Construction Bank International launched the first two new Renminbi-denominated ETFs, the SSE 50 ETF and the Money Market ETF.

The SSE 50 ETF is the first ETF in Europe tracking the SSE50 A-Share-Index while the Money Market ETF is the only RMB money market ETF, investing in onshore Chinese assets, available in Europe, according to a statement by CEINEX.

In addition to the ETFs, a new corporate RMB bond was issued by Bank of China Abu Dhabi.

The launch ceremony was attended by Chinese ambassador to Germany Shi Mingde, Huang Hongyuan, the president of Shanghai Stock Exchange, and Carsten Kengeter, the chief executive office of Deutsche Boerse.

“The launch of CEINEX is an important step forward for the internationalization of RMB and a major breakthrough of the cooperation between China and Germany. The trading platform can bolster the real economy significantly,” Ambassador Shi said.

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