The Foreign Exchange Trading Center Should Work With The German Exchange To Promote The Internationalization Of RMB.

After last week's joint study on the feasibility of "Shanghai Lun Tong", the China Foreign Exchange Trading Center (hereinafter referred to as the "trading center") and the Deutsche bourse group (hereinafter referred to as the "German exchange group") signed a cooperation agreement today to promote bilateral market interconnection and product innovation, and promote the internationalization of RMB.

The cooperation agreement was signed by Sun Jie, vice president of the trading center and Carsten Kengeter, chief executive of the German exchange group, under the joint testimony of Premier Li Keqiang and Premier Merkel.

The signing ceremony was held in Beijing during the eighth visit of German Chancellor Merkel.

According to the cooperation agreement, the two sides will establish a joint venture in Germany, each holding 50%

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The joint venture will strive to achieve three goals: first, the interbank market participants trading the products of the German exchange group; two, the market participants of the German exchange group trading the products of the Chinese interbank market, and the three is to develop Renminbi denominated interest rates outside China.

Products.

The concept of "Shanghai link" came from September this year when China and Britain issued a joint statement saying that the United Kingdom and China agreed to strengthen the links between London and Shanghai stock exchanges and decided to conduct a feasibility study of Shanghai stock market in London.

Pei Chuanzhi, President of the trading center, said: "the cooperation between the trading center and the German exchange group is complementary, mutually beneficial and win-win cooperation. It can further promote the interconnection and opening up of China's European financial markets, and better meet the needs of the central and European economies in terms of interest rate and exchange rate risk avoidance, and promote bilateral cooperation.

It helps to develop the offshore RMB market in Europe and boost the internationalization of RMB.

Carsten Kengeter, chief executive of the German exchange group, said: "we are pleased to establish a strategic partnership with the trading center.

Based on the strength of both sides, our joint venture will further promote the market and economic development of both sides, consolidate the status of Europe as an offshore RMB center, and make our users and our two sides benefit from each other. "

Next, the two sides will cooperate closely and step by step on the basis of the cooperation agreement, and strive to bring the three cooperation goals of both sides to the ground as soon as possible.

In fact, the German Stock Exchange and China's relevant institutions have already started cooperation.

Wall Street knowledge once mentioned that in May this year, the Shanghai stock exchange, the China Financial Futures Exchange and the German Stock Exchange agreed to form a joint venture.

The joint venture aims to develop and provide financial products targeted at Chinese assets for global investors outside mainland China.

Meanwhile, during Xi Jinping's visit to Britain last week, the Hongkong Stock Exchange announced plans to plan the "Lun Tong Tong" plan to link the London and Hongkong commodity markets.

The joint statement issued by China and Britain reiterates its support for the feasibility study of Shanghai Stock Exchange.