Chinese financial exchanges, Deutsche Boerse agree to form JVs in Germany

Investors look at computer screens showing stock information at a brokerage house in Shanghai. Photo: Reuters

China’s Shanghai Stock Exchange, the China Financial Futures Exchange (CFFEX) and the country’s foreign exchange trading operator formally agreed to establish joint ventures with Germany’s Deutsche Boerse AG in Germany on Thursday.

The agreement was signed in Beijing at a ceremony overseen by Germany’s Chancellor Angela Merkel and China’s Premier Li Keqiang, the foreign exchange operator said on its website.

Plans were announced in May for the deals, which will help promote the internationalization of the yuan by giving foreign investors additional access to yuan-denominated financial products traded in Germany.

Beijing is moving quickly in the run-up to a meeting of the International Monetary Fund to decide whether to include the yuan in its basket of reserve currencies, which would provide a boost to the currency’s global status.

One of the complaints of opponents of yuan inclusion is that it is too difficult for foreign investors to get their hands on yuan-denominated financial products outside of China due to long-standing capital account restrictions.

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 International Exchange.”

Sources told Reuters in September that Deutsche Bourse would delay its planned Asian derivatives exchange and clearing house by about 18 months due to financial turbulence in China and software glitches in its clearing system.

(Writing by Pete Sweeney; Editing by Christopher Cushing)

Reuters

Also Read: Deutsche Boerse delays Singapore derivatives launch, other Asia plans to 2017

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.