Euronext, Europe’s largest exchange, has reported the signing of its latest Memorandum of Understanding (MOU), this time with major regional player, Chinese bank, ICBC China Ltd., according to a Euronext statement.
Earlier this week, China Construction Bank (CCB), a leading commercial bank in China, and Brussels-based Euroclear, signed an MoU expressing their mutual intentions to further develop the offshore RMB capital market. Additionally, the week also saw Euronext listed its first money market ETF denominated in RMB on its Paris market – the Commerzbank CCBI RQFII Money Market UCITS ETF.
This latest accord between Euronext and ICBC China follows on the heels of recent talks between both entities over the last few weeks that took place in Netherlands and France. With a renewed focus on a developmental and growth trajectory, Euronext has looked for ways to foster greater cohesion between European and Chinese corporates.
The fundamental purpose of the MOU will aim to enhance ICBC’s regional access to European capital markets, whilst exploring the bank’s application for becoming an integrated trading member of the markets operated by Euronext. More specifically, this will be achieved by facilitating access to Euronext products and markets and enabling payment and settlement in RMB.
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Furthermore, Euronext and the Chinese bank will jointly work to list a number of financial products, including bonds, warrants and certificates, equity and Exchange Traded Funds (ETFs).
According to Mr. Jiang Jianqing, Chairman of ICBC Ltd., in a recent statement on the MOU, “European capital markets play a prominent role in the process of Renminbi internationalization. As the international development of ICBC is entering the new stage of strengthening operation and creating value, this MOU with Euronext is important to establish higher goals for advancing internationalization development in depth and breadth, as well as to provide more valuable RMB products in the European Market.”
“This MOU with ICBC is important for Euronext as we continue to develop our offer for RMB products. Asia, and the Chinese market in particular, is a core growth area for us especially in the context of the acceleration of the RMB internationalization process, and we are delighted that Euronext is now recognized as a key market for RMB bond issues. The currency is starting to take-off as an interesting product for our local and international clients and we expect this strong start to the year to continue,” added Lee Hodgkinson, Head of Markets and Global Sales at Euronext, in an accompanying statement.
Also commenting on the MOU was Anthony Attia, CEO of Euronext Paris, who noted that, “Euronext works constantly to respond to the needs of the global economy, and the signature of this MOU with ICBC is another example of how we are responding to our clients’ needs. This MOU will provide our clients with opportunities to create new products in the increasingly important RMB, and we look forward to developing a closer partnership with ICBC to enhance Chinese community access to European capital markets.”