CEINEX Quarterly No. 4: China Capital Markets Access

Despite the global geopolitical tensions as well as the global Covid-19 pandemic China’s integration in global economy is continuing as before or even more. Especially the integration in the global capital markets is picking up speed. This goes both ways, with more and more barriers being put aside by the Chinese regulators for international financial services firms to enter its market as well as an increasing number of Chinese firms opening offices and branches in Europe and the US. This is a strong signal that the challenges in other terrains can also be solved by cooperation and that all sides involved eventually are still looking to do so.

In the run-up to the China-Europe Financial Summit on Tuesday (20 October 2020), CEINEX has recruited some outstanding authors to present their views on topics of the Chinese capital markets for the CEINEX Quarterly Newsletter: for example, the rapid changes in the Chinese asset management industry.

Further highlights are:

  • Convergence in China: Opportunities for institutional investors by Peter Reynolds, Managing Partner, Head of Greater China, Oliver Wyman, Hong Kong; Kai Keller, Initiative Lead, World Economic Forum, Beijing; Adrian Low, Engagement Manager, Oliver Wyman, Hong Kong
  • M&A Investing in China – Five things to be aware of by Frank Niu, Dentons China
  • Towards a Mutual Beneficial Investment Agreement between the EU and China by Horst Löchel, Professor of Economics and Co-Chairman of the Sino-German Center at Frankfurt School of Finance & Management
  • North Asia leads the recovery in Emerging Markets by Sean Taylor, APAC Chief Investment Officer, DWS, Hong Kong
  • Fintech in China by Thomas Heck, Partner PwC, Head of China Business Group in Germany and Europe & Sebastian Sohn, Senior Manager Financial Services (Singapore) at PwC South East Asia Consulting

Download the Newsletter as a PDF here.


China Europe International Exchange AG (CEINEX) is a joint venture established by Shanghai Stock Exchange (SSE), Deutsche Börse Group (DBAG), and China Financial Futures Exchange (CFFEX). It is the first dedicated trading venue for China- and RMB-related investment products outside of mainland China and considered a strategic project between China and Germany.


Text and Image: © CEINEX 2020

Renminbi Forum

FMF Leads Panel at Luxembourg Renminbi Forum

On June 15, 2016, international leaders from governments and the finance industry met for the third Luxembourg Renminbi Forum to discuss the internationalisation of the Chinese currency. Representing Frankfurt Main Finance at the Renminbi Forum, Hubertus Väth led an exciting panel discussion with leading Renminbi experts titled Stock Exchanges – New Role in RMB Internationalisation. Panelists included Kevin Rideout, Managing Director at Hong Kong Exchanges & Clearing, Robert Scharfe, CEO Luxembourg Stock Exchange, Tilman Fechter, Executive Director of Sales & Relationship Management, Investment Funds Services at Clearstream, and Jianhong Wu, Board Member at China Europe International Exchange (CEINEX). The panellists explored how European stock exchanges will support the internationalisation and growth of the Renminbi. Several initiatives are already underway, for example CEINEX, the first dedicated trading venue for China- and RMB-related investment products in international markets, was established in Frankfurt in 2015.

You can watch the entire panel discussion in the video below.

Video compliments of Luxembourg for Finance.

Friendly Visits Between China and Hesse

The Hessian Minister of Economics’ trips to China in 2012, 2013 and 2014 were aimed at intensifying mutual relations. They were also pivotal in establishing Frankfurt as a Renminbi hub. Read more

Economics Minister Al-Wazir Travels with Delegation to China

The Hessian Economics Minister Tarek Al-Wazir departed Saturday for a weeklong trade mission to the People’s Republic of China. A few months after Frankfurt being named the first Renminbi first trade centre in the Eurozone, finance and economics meetings are at the centre of the trip. “The foundation has been laid, so that Frankfurt can establish itself as a central RMB trading platform in the euro area. The talks with the Chinese central bank, amongst others, will be concerned with fine tuning so that operations can get off the ground as quickly as possible. This will greatly benefit the financial centre of Frankfurt and also many SMEs in Hesse, whose business with Chinese partners will be significantly simplified, “said Al-Wazir upon his departure in Frankfurt.

“The conditions for even closer integration between Hessian and Chinese companies are good,” said Al-Wazir. China is the most important economic partner in the Asian market. The combined overall trading volume is currently over 9 billion Euros. At the same time, China is among the most active foreign investors in Hessen. “More and more Chinese technology companies, who want to invest in high-tech segment, are looking for a location in Europe. Hessen offers especially optimum conditions with its wide range of qualified professionals, high economic power and Frankfurt Airport as an international hub.” There is a great demand in China in sectors like environmental industries, energy efficiency, new materials and information and communication technologies. The Hessian economy compliments this demand with a high degree of expertise in these fields.

The delegation will stop in the capital Beijing, the financial centre of Shanghai and the Hessian partner-province of Hunan.

In Beijing, the conversations with the Chinese Ministry of Commerce (3/11) and the Ministry of Industry and Information Technology (4/11) will focus on the expansion of trade and investment.

In Shanghai (6/11) investment conditions in the Shanghai Free Trade Zone will be a focus of discussions with the local Trade Commission and Investment Authority. On the same day, the 3rd Hessen-Shanghai Business Forum will take place.

In addition to the capital Beijing and the economic hub Shanghai, the Hesse’s partner province Hunan (since 1985) is the third destination (5/11.). Economically speaking, Hunan is among the 10 strongest provinces in the PRC and since June this year is connected to Frankfurt with a direct flight. Hunan is one of the provinces with ambitious goals for improving their environmental quality and plans for resource-saving, environment-friendly development path. There project and company visits will be at the centre.

Overall, the delegation includes nearly 70 people. Their journey will last until 07/11.


Long-time cooperation between Hesse and Beijing

The friendly relations between Frankfurt and China go back to the eighties. The partnership with Guangzhou, the capital of Guangdong province, was established as early as 1988.

In order to strengthen the economic ties between the cities of Frankfurt and Beijing, the Frankfurt Economic Development Company and the Beijing Investment Promotion Bureau signed a memorandum over friendly cooperation in August 2007.

Since then, the dynamic economic development in China, and especially in Beijing as the centre of the financial industry, has rapidly accelerated. In the third quarter of 2012, over 1,000 financial institutions and over 400 supervisory and regulatory bodies were headquartered in the Beijing Financial Street. Around 174,000 employees work there today for various kinds of financial service providers, which amounts to 70 percent of all employees in the finance sector throughout Beijing. The volume of financial assets totalled 62.1 trillion yuan RMB, accounting for almost 50 percent of the national total.

Accordingly, it was only logical for the financial hub Frankfurt to sign an agreement with Beijing in 2012 about long-term cooperation between the two financial centres. The arrangement centres on issues of financial market regulation and risk management as well as the education and training of managers and executives. The financial location Frankfurt is thus further expanding its excellent capabilities and contacts in these areas.

With its Xicheng District, Beijing is one of the most dynamic financial centres in the world. The collaboration is a valuable asset to the global network of the financial centre Frankfurt. Xicheng offers great business potential, which is to be developed for the financial industry in Hesse by the joint initiatives of the Hesse state government, the representatives of the economic community in Hesse and the financial centre Frankfurt.

The financial centre agreement is rounded off by an agreement to stage a Hessian-Chinese Economic and Trading Day in Frankfurt. The possibility of setting up a Chinese-Hessian business advisory board is being explored.


Hesse-Shanghai cooperation deepens relations with China

As well as with the capital Beijing, close links also exist with the 23 million metropolis of Shanghai. The Hesse-Shanghai Business Forum has been taking place every year since 2012, alternating between the cities of Shanghai and Frankfurt.

The first international Hesse-Shanghai Business Forum was staged in 2012 under the title “Financing of investment and trade – collaboration between banks and companies”. Around 200 visitors came together at the event. The Chinese participants expressed their approval about the outstanding infrastructure, the comprehensive range of business-related services, the number of highly skilled workers and the good educational facilities for Chinese children in the financial hub Frankfurt.

“Strengthening partnership and investment” was the title of the second Hesse-Shanghai Business Forum in 2013 in Shanghai. It focused on issues such as Frankfurt as a European centre for business transactions with the Chinese currency, the cooperation between the financial centres Shanghai and Frankfurt, and the financing of investment and trade in Germany and China.

The Chinese companies have a great interest in trading with and investing in the German federal state of Hesse. Many are looking for concrete discussions and financing partners for just that purpose. The Hesse-Shanghai Business Forum provides a good platform for such an exchange.

During the forum it once again became clear that Frankfurt’s development towards becoming the renminbi business centre for the euro area is moving forward rapidly. As early as 2012, Germany lay in first place in terms of cross-border renminbi payment transactions within Europe. If the Sino-German economic exchange increases from its figure of 130 billion euros in 2012 to 200 billion euros in 2015, as intended by the Chinese government, this position will be further enhanced. Many companies are making it clear that they want to use the renminbi (RMB) for their business transactions. The number of financial institutions in Germany that have traded in RMB increased from 17 to 62 within a year.

In China the development of an RMB Centre and a liberalised trade in goods and services is being particularly promoted in Shanghai. The establishment of the China (Shanghai) Pilot Free Trade Zone is seen as a rehearsal for a gradual opening of the markets in China. An agreement with the city of Shanghai aims to exploit the opportunities arising from this endeavour through a close cooperation between the financial and economic centres of Shanghai and Frankfurt.