First RMB denominated ETF lists in Paris

Euronext, the primary exchange in the Euro zone, today welcomed Commerzbank CCBI RQFII Money Market UCITS ETF to its Paris market. It is the first money market ETF denominated in RMB on its markets and underscores Euronext’s position as a key access point for Chinese investors.

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CCB International Asset Management Limited, the asset management arm of CCB International (Holdings) Limited (CCBI), serves as the Investment Manager of the ETF. CCBI and its affiliate companies are wholly owned by CCB. In addition, Euronext signed a Memorandum of Understanding (MOU) with CCB to develop a strategy to enhance the bank’s access to European capital markets.

The Commerzbank CCBI RQFII Money Market UCITS ETF, which offers investors exposure to interbank bond market in Mainland China, was successfully listed today and makes CCBI the 19th issuer on Euronext’s markets. The ETF will be available for trading in both RMB and Euros and will be settled exclusively with Euroclear, the International central securities depository, in multiple currencies. Euronext now offers a total of 646 ETFs on its pan-European markets.

The MOU, signed in Paris in the presence of the Prime Minister of France, Mr. Manuel Valls and the Premier of the State Council of the People’s Republic of China, Mr. LI Keqiang, by Lee Hodgkinson, Head of Markets and Global Sales and CEO of Euronext London and Anthony Attia, CEO of Euronext Paris, and WANG Hongzhang, Chairman of the Board of Directors of CCB, will explore how the two companies can further develop CCB’s access to European Capital markets. Areas under discussion include the possibility of CCBI becoming a trading member of Euronext markets; easing access to Euronext products within CCB; and RMB payment and settlement structures. It is expected that the cooperation between the two companies will further push forward RMB internationalization, and will enable Euronext markets to become offshore RMB business centres. The MOU will also pave the way for Chinese enterprises to come to Europe for finance, investment and commodities trading.

CCB is a leading commercial bank in China, providing a comprehensive range of commercial banking products and services. Its business consists of three principal business segments: corporate banking, personal banking, and treasury operations. It is among the market leaders in China in a number of products and services,including infrastructure loans,residential mortgage and bank cards. At the end of May 2015, the market capitalization of the Bank reached US$ 251.4 billion, ranking it third among listed banks in the world.

WANG Hongzhang, Chairman of the Board of Directors of CCB said, “Developing offshore RMB business in Europe is one of the key elements in CCB’s internationalization strategy; the cooperation with Euronext marks another important historical milestone. We believe, not only does this allow us to gain further access to the European capital markets, internationalize our operations, and provide our clients with additional channels to invest in Euronext Paris, it will also encourage an extensive use of RMB products by French enterprises, financial institutions and investors, and ultimately drive the internationalization of the RMB.”

Thomas Timmermann, CEO of Asset Management at Commerzbank Corporates & Markets, commented, “RMB is an increasingly important currency for investors and we are delighted to be able to broaden the reach of this product to French investors. We appreciate and recognise the importance of the French investor base in the internationalisation of the RMB. The ETF provides offshore investors the opportunity to use offshore renminbi deposits to invest in the mainland securities markets, with the aim of maintaining capital value and generating returns linked to the RMB money markets.”

Stephan Pouyat, Global Head of Capital Markets at Euroclear, stated: "Further enhancing the RMB 2 trillion offshore market, in close co-operation with CCB, showcases our ability to meet clients’ ever increasing need for access to quality international instruments. A day after signing a Memorandum of Understanding with CCB in the presence of the Belgian Prime Minister Charles Michel and the Premier of the State Council of the People’s Republic of China, Li Keqiang, Euroclear is privileged to be present at Euronext Paris today, where CCBI’s latest international ETF is breaking new ground in a major European capital market. It positions Euronext as the leading stock market for international ETF listing in continental Europe and we are convinced it will go a long way in helping CCB achieve their strategic objective of making RMB financial instruments available to an even wider investor base."

Jos Dijsselhof, Interim Chief Executive of Euronext said, “We are delighted to welcome CCB, one of China’s leading commercial banks, as investment manager on ETFs now listed on our Euronext markets. The RMB is increasingly used in cross border transactions so this is an exciting step for Euronext as we continue to develop our offer in RMB denominated products and welcome Chinese investors to our market, underscoring our position as a leading financing centre able to attract high quality companies from across the world. We are very honoured to develop a new relationship with CCB to develop cooperation between the two companies and to reinforce our Euronext name in Asia.”

ETFs are open-end investment funds that are listed on an exchange and continuously traded in the same way as a normal share. In general, an ETF is linked to a benchmark index and aims to closely follow its performance. ETFs combine the simplicity of equities with the diversified risk of investment funds, and offer flexible, low-cost exposure to entire markets or market segments through a single transaction. The low level of management fees is a further benefit of ETFs.

Next Finance July 2015

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