Euroclear, the Brussels based bank which operates as an international central securities depository, have signed a Memorandum of Understanding with the China Construction Bank. The document ensures both parties are committed to developing the interests of the Renminbi, Chinese currency, abroad.
Under the Memorandum both parties will be responsible for cooperating to develop and distribute offshore Renminbi financial products and provide high quality services to offshore Renminbi market participants.
The China Construction Bank will work closely with Euroclear through their subsidiary the China Construction Bank International Holdings Limited, particularly with the further promotion of the international issuance structure, following the launch in London this March of Exchange Traded Funds which were both internationally distributed and formed of
Renminbi.
Wang Hongzhang, the Chairman of the CCB who presided over the signing ceremony for the Memorandum of Understand, indicated the vast scope of the deal. ‘We are delighted to be a partner in this forward-looking
and mutually supportive initiative between CCB and Euroclear. The development of robust and reliable infrastructure to support RMB denominated financial instruments is key to achieving our ambitious goal of truly internationalising
offshore RMB products. By leveraging Euroclear’s global network, CCB will help drive the development of offshore RMB markets and assume a leading role in the financial cooperation between China and Europe.’
This idea of using combining the two firms’ joint market influence to help encourage the offshore Renminbi markets was echoed in the statement of Marc Antoine Autheman, the Chairman of the Euroclear group.
‘Euroclear has keenly supported the offshore RMB market’s rapid growth over the past few years, further promoting Belgium’s development as a financial centre. Partnering with CCB enables us to provide our global client base enhanced access to the flourishing offshore RMB market. This milestone reflects Euroclear’s commitment to foster an open and connected marketplace, safeguarding both growth and stability in the world’s capital markets.’
