Published On: Mon, Jul 14th, 2014

JPX And Bank Of China Sign A Memorandum Of Understanding

Atsushi Saito, JPX Group CEO

Atsushi Saito, JPX Group CEO

Japan Exchange Group, Inc. (JPX) and Bank of China Limited (BOC) on 11 July signed a comprehensive memorandum of understanding (MOU) on establishing and developing a yuan-denominated financial instruments market in Japan.

Under the MOU, JPX and BOC will jointly develop yuan-denominated products and create a framework to facilitate the clearing and settlement of yuan-denominated products in Japan. To realize our aims, we will be considering the provision of yuan settlement services by BOC in Japan and its membership of a Japanese clearinghouse. We will also work together to attract more investment from China to the Japanese market. To foster a mutually beneficial long-term partnership, JPX and BOC will also strive to share information and expertise across a broad range of issues and build a framework for cooperation and collaboration through personnel exchanges.

The deeper and stronger ties between JPX and BOC are expected to bring greater diversity to products available to investors in both Japan and China, raise the global appeal of the Japanese market, and promote the further development of the offshore yuan market.

Japan Exchange Group CEO Atsushi Saito said, “I believe that this MOU presents us with a very good opportunity and platform to strengthen the ties between the Japanese and Chinese financial and capital markets. We can expect the development of yuan-denominated products to bring a wider range of options to investors. I also look forward to our contributions to the growing sophistication of the offshore yuan market with the provision of yuan settlement services in Japan by BOC.”

Chairman of BOC Tian Guoli said, “As a financial institution with the longest history in China, BOC is the most internationalized and diversified bank of the country. It also became the first Chinese bank to establish a branch in Japan in July 1986. This MOU marks the start of cooperation between BOC and JPX and I expect this to enable Chinese companies to be listed in Japanese market and to issue bonds, and every investor to have easier access to yuan-denominated financial products through further globalization of the RMB market, joint development of yuan-denominated products in the Japanese market, and designing a clearing and settlement infrastructure.”

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