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Frankfurt yuan trading starts on new China platform
[FRANKFURT] Trading in yuan-denominated securities got underway on the Frankfurt stock exchange Wednesday, hailed as the first such market outside China.
The platform, first announced during Chancellor Angela Merkel's visit to China last month, is to allow investors in Europe to trade securities denominated in the Chinese currency.
It is the first yuan market authorised outside China, according to Han Chen, the platform's joint CEO.
"The first trades have already taken place in the early hours of market operations," exchange operator Deutsche Boerse said in a statement, after the "China Europe International Exchange" or CEINEX, opened at 9:00am (0800 GMT).
The platform is a joint venture between Deutsche Boerse, the Shanghai Stock Exchange and the China Financial Futures Exchange.
For now, it offers trading in index-linked funds and "a wide range" of yuan-denominated futures", but more types of securities are to be made available, the joint CEO said.
After failing to merge with NYSE Euronext in 2012, Deutsche Boerse's development strategy has been focused on cooperation with Asia.
It signed a deal with Bank of China in 2014 to establish a clearing division for yuan currency transactions in Frankfurt.