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China Construction Bank lists first RMB money market ETF on Euronext Paris
China Construction Bank Corporation (CCB) launched the first renminbi-denominated money market exchange-traded fund (ETF) in the Eurozone.
The Asset 2 Jul 2015
China Construction Bank Corporation (CCB) launched the first renminbi-denominated money market exchange-traded fund (ETF) in the Eurozone.
 
The fund, which can invest via the RQFII (reminbi qualified foreign institutional investor) quota, will be traded on Euronext Paris. CCB International Asset Management Limited (CCBIAM), the asset management arm of CCB International (Holdings) Limited (CCB International), a subsidiary of CCB, will be the ETF’s investment manager.
 
The fund is considered a breakthrough as it strives to support the strategy of listing CCB’s renminbi products in multiple markets, i.e. the implementation of a multi-time zone, cross-market offshore renminbi fund, covering major capital markets worldwide.
 
CCB Chairman Wang Hongzhang, Interim CEO of Euronext Jos Dijsselhof attended the listing ceremony, head of markets and global sales and CEO of Euronext London, Lee Hodgkinson, representative from the French Treasury, executives of Commerzbank and Euroclear bank witnessed this moment.
 
By investing in the fixed-income securities in China via the RQFII quota provided by the investment manager, this first RMB fund jointly launched by CCB and Euronext Paris fulfils the demand of European investors for relatively stable return and liquidity.  In the long run, it serves to promote the circulation, utilization and recognition of RMB in European markets.
 
CCB has signed a memorandum of understanding with the London Stock Exchange last year. On June 29, Chinese Premier Li Keqiang, witnessed the signing of a MoU between CCB and Euroclear, the largest international clearing agent in the world. All of these together with the cooperation with Euronext lay a solid foundation for CCB International to further develop its asset management business in Europe.

 

“Not only does this mark an important historical milestone in the internationalization process of CCB, it also demonstrates a significant achievement of the internationalization of the renminbi. This heralds an innovative and important step in – Sino-Euro financial cooperation,” says a market analyst. 

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