TOKYO, July 11, 2014 (GLOBE NEWSWIRE) -- Today, Japan Exchange Group, Inc. (TSE:JPX) and Bank of China Limited (BOC) 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."
Japan Exchange Group, Inc.
Japan Exchange Group, Inc., one of the leading exchange groups in the world, is a holding company established on January 1, 2013 as a result of a business combination between Tokyo Stock Exchange, the largest stock exchange in the Asia-Pacific region, and Osaka Exchange, a major derivatives exchange. JPX listed its stock on TSE on January 4 of the same year. The JPX stock market reached approximately USD 4.5 trillion (JPY 478 trillion) in market capitalization as of the end of December 2013. JPX also provides derivatives markets for major Japanese contracts such as Nikkei 225 futures, TOPIX futures, and JGB futures.
Bank of China Limited
As the only centenarian financial enterprise in China, BOC is also the most internationalized and diversified bank of the country, with operations spanning a wide variety of sectors including commercial banking, investment banking, direct investment, investment management, insurance, fund and leasing, and overseas presence in 40 countries and regions. The Bank is the only financial institution from emerging market economies that has entered the list of global systematically important banks for three consecutive years, and has been one of the "Fortune Global 500" for 25 straight years. It is ranked 7th by capital strength among banks worldwide, with key financial indicators attaining world-leading levels. As of the end of March 2014, BOC's total assets amounted to RMB15.11 trillion.
Bank of China http://www.boc.cn/en/