Amsterdam, Paris – 1 July 2015 – Euronext today announced that it has signed a Memorandum of Understanding (MOU) with the leading Chinese bank, ICBC China Ltd.. This agreement follows discussions between both groups over the last weeks initiated both in the Netherlands and France. Euronext is now completely focused on its trajectory to develop its markets as a fully equipped tool to support cross border transactions of European and Chinese corporates.
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, on 30 June, will aim to enhance ICBC’s access to European capital markets, by exploring the bank’s application for becoming a trading member of the markets operated by Euronext; facilitating access to Euronext products and markets and enabling payment and settlement in RMB. In addition, the two companies will work jointly to list products such as bonds, warrants and certificates, equity and ETFs, and will establish and maintain partnerships in marketing activities.
Euronext’s position as a leading capital raising centre in Europe for RMB is taking off. It has raised RMB 5.25 billion on its markets this year, already more than doubling the RMB 2.5 billion that was raised in 2014. Over the past four years nearly RMB 12 bn has been raised on Euronext markets1. Both domestic and international issuers are interested in listing both onshore and offshore RMB and a significant number of additional projects are expected in the coming months.
Euronext has recently signed an MOU with the Schenzen Stock Exchange to enhance the development of Exchange Traded Products (ETPs) in the Republic of China and the Euronext markets; and with the Dalian Commodities Exchange to carry out joint research into the promotion, distribution, trading and development of commodity products.
Mr JIANG Jianqing, Chairman of ICBC Ltd., said, "European capital markets play a prominent role in the process of Renminbi internationalization. As the international development of ICBC is entering the new stage of "strengthening operation and creating value", this MOU with Euronext is important to establish higher goals for advancing internationalization development in depth and breadth, as well as to provide more valuable RMB products in the European Market."
Lee Hodgkinson, Head of Markets and Global Sales at Euronext, said, "This MOU with ICBC is important for Euronext as we continue to develop our offer for RMB products. Asia, and the Chinese market in particular, is a core growth area for us especially in the context of the acceleration of the RMB internationalization process, and we are delighted that Euronext is now recognized as a key market for RMB bond issues. The currency is starting to take-off as an interesting product for our local and international clients and we expect this strong start to the year to continue."
Anthony Attia, CEO of Euronext Paris, said, "Euronext works constantly to respond to the needs of the global economy, and the signature of this MOU with ICBC is another example of how we are responding to our clients’ needs. This MOU will provide our clients with opportunities to create new products in the increasingly important RMB, and we look forward to developing a closer partnership with ICBC to enhance Chinese community access to European capital markets."
- Cades successfully issued RMB 3 billion in February 2015 on Euronext Paris making it the first RMB bond issue ever launched by the French state and the largest in the Chinese currency by a Eurozone issuer
- Significant RMB bond issuance of RMB 1,25 billion by Société Générale in June 2015
- French companies are among the major European users of RMB-denominated bonds with circa RMB 10 billion issued so far by six issuers: Total, Renault, Veolia, Alstom, Lafarge and Air Liquide
- All leading banks in France already offer a diversified range of products and services in all RMB segments (Deposits and Loans, Trade Finance, Cross-Border Transfers, FX Offer, etc.)
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