In an industry first, a renminbi (RMB)-denominated money market exchange traded fund (ETF) will be listed and traded in RMB, pounds sterling (GBP) and euro (EUR) on the London Stock Exchange, said Euroclear Bank.
The Brussels-based international central securities depository (ICSD) announced that it is partnering with CCB International Asset Management Limited (CCBIAM), the asset management arm of CCB International (Holdings) Limited (CCB International), and Commerzbank AG to issue the first ever RMB-denominated money market ETF in international form: Commerzbank CCBI Investment Funds ICVC – Commerzbank CCBI RQFII Money Market UCITS ETF.
The new ETF will settle directly in the ICSD – Euroclear Bank. CCBIAM and Euroclear Bank added that they are combining their efforts to launch RMB settlement and lay the foundations for future RMB-denominated ETFs to develop in European markets.
“Our partnership with Euroclear is the result of months of co-operative discussion about how we can best tap into London-based investors, and in future, other pools of wealth,” said Dr. Hu Zhang Hong, chief executive officer (CEO) of CCB International.
“London has long been a champion in promoting initiatives and enhancing infrastructure, and has become a vibrant RMB centre. I would like to pay tribute to the key infrastructure provider – Euroclear – in making the launch a reality. But this is just the beginning; we will continue the fruitful dialogue on the international RMB market with our Hong Kong and mainland regulators and our partners in Europe.”
“We are proud to partner with CCBIAM in its historic decision to move ahead with the inaugural trading day of its first ever UK-based off-shore-RMB ETF in international form,” added Stephan Pouyat, global head of capital markets at Euroclear.
“Extending RMB issuance in Europe is a natural fit for us and showcases the value of our international platform as well as our global client base. An international ETF model such as this supports our clients’ quest for greater portfolio diversification possibilities and investment choices. It is an honour to be the infrastructure provider of choice to support CCBIAM’s ambition to distribute its ETF beyond Europe into Asia and America.”
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
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