German stock market operator Deutsche Börse is set to boost ties with China’s biggest private lender, Bank of China. The deal includes expansion of trading in the Chinese currency and access to EU capital markets.
Deutsche Börse and Bank of China have signed a memorandum of understanding for establishing a preferred partnership, the German stock market operator announced on Monday.
The strategic cooperation agreement is aimed at providing products and services to foster cross-border business between China and the European Union, Deutsche Börse said.
“Our agreement marks an important step toward bringing the European and Chinese markets closer together,” Deutsche Börse Chief Executive Reto Francioni said.
The partnership is part of Deutsche Börse's efforts to boost its business in Asia where the German stock market operator garnered just 5 percent of its total revenues last year. By providing easier access for Chinese players to Deutsche Börse markets and products, Francioni hopes to increase Asian sales by about 100 million euros ($135 million) over the next five years.
Part of the initiative is also to be the development of an offshore market in Europe for the Chinese currency, Renminbi. Moreover, Deutsche Börse and Bank of China are to assist each other in investor education and business development, the memorandum said.
“In the light of continuous fast internationalization of the RMB [Renminbi], the building-up of a strategic cooperation between both parties will lead to a win-win situation,” said Bank of China Chairman Tian Guoli.
uhe/pfd (Reuters, AFP)