April 20, 2014
On 28th March 2014, Bank of China entered into a strategic partnership with Deutsche Boerse Group. Under the terms of the agreement, both sides will carry out all-round cooperation in custody business, full clearing membership, R&D, promotion of RMB-denominated products and offshore RMB clearing & settlement.
Such bilateral strategic cooperation will further facilitate the development of RMB internationalization and the development of the offshore RMB center in Frankfurt, as well as offer convenience to Chinese enterprises in broadening investment and financing channels in Europe and conducting commodity trade, states their website.
Deutsche Boerse Group currently owns the futures exchange, spot trading market, clearing companies, index and IT firms, domestic and international securities settlement and custody institutions, etc. Its business scope covers the whole business chain of securities issuance and listing, securities settlement and custody services, trading and clearing of securities and derivatives, collateral management business, development and services of financial market data products and IT platforms, , index calculation and authorization, etc.
BOC has established overseas branches in 37 countries as well as in Hong Kong, Macau and Taiwan regions. It is an RMB clearing bank in Hong Kong, Macau, Taiwan, Malaysia, Luxembourg, Cambodia and the Philippines, among others. BOC has become the major channel for RMB clearing in the UK, Germany, France, Japan, South Korea, Indonesia, South Africa, etc. During 2013, BOC says that it completed cross-border RMB settlements amounting to RMB3.98 trillion, with a 60% increase year-on-year.