Euroclear Bank, the Brussels-based international central securities depository (ICSD), and China Construction Bank (CCB) have signed a Memorandum of Understanding (MoU) to further develop the offshore Renminbi (RMB) capital market.
CCB Chairman Wang Hongzhang, Euroclear group Chairman Marc Antoine Autheman, and Euroclear Chief Technology and Services Officer Lieve Mostrey attended the signing ceremony, joined by the Prime Minister of the People’s Republic of China, Li Keqiang, and the Belgian Prime Minister, Charles Michel.
The MoU commits both parties to fully cooperate in developing and distributing offshore RMB financial products, as well as the provision of high quality services to offshore RMB market participants. CCB would through its subsidiary CCB International (Holdings) Limited (CCB International) work closely with Euroclear Bank in the further promotion of the international issuance structure for ETFs following the March launch in London of the first ever RMB-denominated money market ETF in international form.
CCB’s Chairman, Wang Hongzhang stated: “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.”
Marc Antoine Autheman, Chairman of the Euroclear group, commented: “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.”