CCB International and Commerzbank lists the first RQFII RMB denominated ETF on London Stock Exchange
London Stock Exchange ("LSE") warmly welcomes CCB International Asset Management Limited ("CCBI"), the asset management arm of CCB International (Holdings) Limited ("CCB International") and Commerzbank AG who have teamed up to launch the Commerzbank CCBI Investment Funds ICVC - Commerzbank CCBI RQFII Money Market UCITS ETF. The ETF is the first UCITS regulated RQFII Money Market ETF launched in Europe, and it is also the first LSE listed RMB denominated money market ETF which can be traded and settled in RMB, GBP, and EUR.
The investment objective of the Fund is to aim to maintain the value of the Fund and to generate sustainable and stable returns by investing in approved money market instruments denominated and settled in RMB; the ETF provides European investors with an effective offshore RMB investment vehicle which has direct access to China Interbank Bond Market ("CIBM") - a high volume and high liquidity market.
CCB International is an investment services flagship wholly owned by China Construction Bank Corporation ("CCB") in Hong Kong, CCB International via its subsidiary CCBI, is among the first RQFII investors to obtain the license from People’s Bank of China to invest in the CIBM for private RQFII products. CCB is the second largest bank in China, market capitalization of the bank reached around US$208 billion by the end of 2014, its wholly-owned subsidiary, China Construction Bank (London) Limited ("CCB London") was designated as the London RMB clearing bank, the first time such a title has been granted by the People’s Bank of China outside of Asia, and CCB London Branch was authorised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 22 December 2014.
Commerzbank AG is a leading international commercial bank with branches and offices in more than 50 countries. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, its private customers and corporate clients, as well as institutional investors, profit from a comprehensive portfolio of banking and capital market services. The Bank, which was founded in 1870, is represented at all the world’s major stock exchanges. In 2014, it generated gross revenues of almost EUR 9 billion with an average of approximately 52,000 employees.
Commerzbank Asset Management is part of the Corporates & Markets division of Commerzbank AG. It is the provider of Comstage ETFs as well as acting as a highly specialised investment service provider. It offers a full range of ETFs across asset clases through the Comstage platform and a spectrum of funds and asset management services invested in a range of asset classes worldwide. The offering is designed for both institutional and retail investors. Its primary activities are based in Frankfurt, London and Luxembourg – where its own fund management company, Commerz Funds Solutions S.A. is based. Its flexibility, reliability and service orientation are highly valued by clients and partners alike. Client services cover four key areas: ETFs, Active Asset Management, Passive Asset Management and Private Labelling.
Hu Zhang Hong, CEO of CCB International, said: "Not only does this mark an important historical milestone in the internationalization process of the CCB and CCB International, it also demonstrates the significant achievement of the Chinese banking industry reform and the internationalization of the RMB. This heralds an innovative and important step in the financial cooperation between China and the United Kingdom."
Thomas Timmerman CEO of Asset Management at Commerzbank Corporates & Markets commented: "Renminbi is an increasingly important currency for investors and we are delighted to be able to offer this product in partnership with China Construction Bank International. The ETF provides our customers an opportunity to invest in the region and offers further flexibility by trading and settling in Euro, Renminbi or Sterling. The ETF provides offshore investors the opportunity to use offshore renminbi deposits to invest in the mainland securities markets, with the aim of maintaining capital value and generating returns linked to the RMB money markets."