World Economy

Yuan-Based ETF in Europe

Yuan-Based  ETF in EuropeYuan-Based  ETF in Europe

Europe’s first Exchange-Traded Fund denominated in yuan and based on the domestic Chinese share market was launched on Friday, Bank of China’s international division said in a statement, Reuters reported. The ETF is sponsored by BOC International and started trading on Friday on the China Europe International Exchange, a Frankfurt-based joint venture between Deutsche Boerse and two Chinese exchanges, BOCI said in the statement. “It boosts the opening up of China’s capital market and renminbi or yuan internationalization, opening a new chapter in our overseas business development,” Li Tong, chief executive officer of BOCI, said. Beijing is trying to improve international perceptions of its financial openness in the run-up to a meeting of the International Monetary Fund to decide whether to include the yuan in its basket of reserve currencies, which would provide a boost to the currency’s global status.