Brussels-based Euroclear will collaborate with China Construction Bank to develop offshore renminbi products such as renminbi-denominated exchange-traded funds (ETFs).
The firm, an international central securities depository, is the latest player in the European post-trade industry to sign a memorandum of understanding with a Chinese bank.
In March 2014, Deutsche Borse, which owns Euroclear's rival Clearstream, signed a deal with Bank of China to give Chinese investors easier access to Europe's capital markets.
Wang Hongzhang, chairman of China Construction Bank, says developing the infrastructure to support renminbi-denominated instruments is "key to achieving our ambitious goal of truly internationalising offshore renminbi products".
In a statement, Euroclear highlighted ETFs as an area of mutual interest, following the launch, in March, of the first renminbi-denominated money market ETF in international form by Commerzbank and the international subsidiary of China Construction Bank.
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