Deutsche Boerse agrees to JVS with Chinese peers

China’s foreign exchange operator will establish a 50-50 joint venture with Deutsche Boerse, and the German exchange will also establish a three-way venture with the Shanghai Stock Exchange and the CFFEX, to be called the “China Europe worldwide Exchange”.

Deutsche Börse strengthened its links with mainland China this week with the establishment of a partnership with the Shanghai Stock Exchange and China Financial Futures Exchange to create new marketplace for the trading of renminbi-denominated offshore products under the new brand of the China Europe global Exchange.

The Germany-based venture will allow China interbank market players to trade Deutsche Boerse’s cash and derivatives products while those from Deutsche Boerse can trade China’s interbank market products.

The German exchange said in May that it’s starting a joint venture with two Chinese exchanges to offer renminbi-denominated instruments. “It will thus perform a pivotal role in the course of opening up the Chinese capital markets and increasing RMB internationalisation”. 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. BoC will also facilitate access to CEINEX’s products for customers from China and other Asian markets.

“CEINEX is a milestone in the strategic cooperation amongst our three exchanges”. And just as London Stock Exchange Group played a role in the U.K.’s courtship of China and the ensuing volley of announcements, Deutsche Boerse Chief Executive Officer Carsten Kengeter is part of Merkel’s entourage of business leaders in Beijing. “We are happy to contribute to this excellent development”.