China Construction Bank, Euroclear ink MOU on offshore RMB financial products

Regarding a global RMB financial products platform.

China Construction Bank (CCB) and Euroclear Bank (Euroclear) entered into a Memorandum of Understanding (MoU) at Chateau Val Duchesse close to Euroclear's headquarters in Belgium.

According to a release from CCB International, the MoU commits both parties to fully cooperate in the development of offshore RMB financial products, financial infrastructure, and client resources.

Also, in the development of the provision of high quality services to offshore RMB market participants.

CCB Chairman, Wang Hongzhang and Euroclear Group Chairman Marc-Antoine Autheman and Chief Technology and Services Officer Lieve Mostrey, attended the signing ceremony.

Prime Minister of the People's Republic of China, Li Keqiang, and the Belgian Prime Minister, Charles Michel witnessed this moment.

Here's more from CCB International:

Under the MoU, both parties will endeavour to support CCB's RMB products multi-listing strategy , a multi-time zone, cross-jurisdiction, 24-hour trading offshore RMB fund, covering the key markets in Europe, Asia, North America and South America.

CCB has in recent years been actively expanding its overseas businesses, So far, it has established 22 tier-one overseas entities outside mainland China, covering 20 countries and regions.

CCB is also a designated RMB clearing bank in the United Kingdom and Chile. In March 2015, Europe's first RMB RQFII money market ETF was listed on the London Stock Exchange.

Euroclear is the world's largest international central securities depository. Its business covers bonds, equities, derivatives and funds. Its clientele includes 90% of the world's top 50 banks, and over 100 central banks.

With the expansion of overseas businesses, the establishment of financial infrastructure is key to the successful development of offshore RMB products.

On this occasion, this forward-looking and mutually supportive cooperation between CCB and Euroclear represents a significant breakthrough in CCB's offshore RMB business in Europe.

By leveraging Euroclear's multi-time zone settlement and asset servicing network, it puts CCB in an advantageous position to be more proactive and comprehensive in developing market infrastructure in Europe and other offshore RMB markets around the world.

This has great significance both at present and in the long term, in driving financial cooperation between China and Europe and the internationalization of the RMB.