London Stock Exchange Group signs MoU with China Construction Bank

  • LSEG and China Construction Bank agree to wide ranging collaboration across listing, trading and post trade
  • Continued strengthening of UK – China financial ties
  • China Construction Bank already designated London RMB clearing bank

London Stock Exchange Group (LSEG) yesterday signed a memorandum of understanding (MoU) with China Construction Bank (CCB). The agreement, signed by LSEG CEO, Xavier Rolet and CCB Chairman, Hongzhang Wang, will see the two organisations enter a strategic cooperation and work together to expand each company’s access to UK, European and Chinese markets as well as promoting the development of the offshore RMB market in the UK.

The signing ceremony, held at LSEG’s Paternoster Square headquarters follows CCB’s designation earlier this year as the first clearing bank outside Asia for the Chinese currency and will help strengthen the fast-growing financial ties between London and China.

The MoU outlines several areas for closer collaboration with a particular focus on developing RMB-denominated products and boosting the liquidity for such products in UK and European markets. Within this framework, CCB intends through its affiliate, CCBI to launch multiple series of ETF products including the RQFII Money Market ETF, to be listed in London and provide UK investors the opportunity to invest into Chinese equity and fixed income markets.

Xavier Rolet, CEO, LSEG said:
“China's exceptional economic growth has fostered a deep and vibrant base of Chinese companies that have made great advances in accessing public capital markets both at home and overseas. We are fully committed to supporting the efforts of the Chinese and the UK Governments in developing an off-shore RMB market in London through innovation and partnership with CCB. Equity and clearing are the cornerstones for the expansion of a truly global market for Chinese companies and financial products. The agreement signed today will accelerate the writing of this exciting new chapter in the story of global finance.”

Hongzhang Wang, Chairman of China Construction Bank said:
"China's rapid economic development has encouraged Chinese enterprises to expand internationally, which in turn has promoted the internationalisation of the Renminbi. China Construction Bank, as one of China's most influential multinational finance companies, will actively support Chinese entities as they expand into Europe, giving impetus to the steady expansion of the RMB internationally.

The signing of this strategic co-operation Memorandum of Understanding builds on CCB's status as the UK's designated RMB clearing bank, and is another important step in expanding CCB's business scope within the UK financial arena. Mutual cooperation with London Stock Exchange Group will raise both parties' international competitiveness and boost the development of London's off-shore RMB market, and is an important milestone in the cooperation between China and the UK's financial sectors."

LSEG has a strong track record of supporting Chinese equity and debt issuance on its markets. 59 Chinese companies are quoted in London - 7 on the Main Market and 52 on AIM. In addition, there are 19 so-called dim sum bonds on London Stock Exchange’s markets, with an aggregate value of RMB 14 billion. This year, IFC, part of the World Bank Group and Bank of China issued bonds of RMB 2 billion and RMB 2.5 billion respectively.

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Alex Ritterman +44 (0)20 7797 1222
newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.

The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.

London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 30 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.

Further information on London Stock Exchange Group can be found at: www.lseg.com