London Stock Exchange Group signs MoU with Agricultural Bank of China
- LSEG and Agricultural Bank of China agree to help to facilitate access to London’s capital markets for Chinese companies
- Significant boost to growing UK – China ties
- Signing coincides with UK visit of Chinese Premier, Li Keqiang
London Stock Exchange Group (LSEG) today signed a memorandum of understanding (MoU) with Agricultural Bank of China (ABC). The agreement, signed by Chris Gibson-Smith, LSEG Chairman, and Jiang Chaoliang, Chairman, ABC Chairman, will see the two organisations work towards establishing new RMB equity products for the London market.
The signing ceremony, held at LSEG’s Paternoster Square headquarters coincided with the visit of Chinese Premier Li Keqiang to the United Kingdom and will help strengthen the fast-growing financial ties between the UK and China.
As well as the development of a new RMB product, the MoU outlines several areas for closer collaboration, including facilitating access to capital by Chinese companies through London Stock Exchange’s Primary Markets operations and supporting investor education and awareness programmes in China and the UK.
Chris Gibson-Smith, Chairman, LSEG said:
“We are delighted to sign this important MoU with Agricultural Bank of China. 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 Government in developing an off-shore RMB market in London through innovation and partnership with Agricultural Bank of China.”
Jiang Chaoliang, Chairman, ABC said:
“This important MoU with London Stock Exchange Group again manifests our bank’s commitment to the European market. We will be working closely with LSEG on facilitating Chinese corporates’ access to the UK and European capital markets as well as promoting the development of the offshore RMB market in London. We believe the ABC-LSEG partnership will not only strengthen the international competitiveness of the two organisations but also significantly enhance the strategic, economic and financial cooperation between the two countries.”
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 billions and RMB 2.5 billion respectively.
FTSE, part of LSEG, is a global leader for China based indices, with more than half of all non-China domiciled global ETF assets invested in China linked to FTSE products. Over 75 per cent of China A Share ETF AUM in Hong Kong are benchmarked to FTSE indices.
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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