Successful listing of DFZQ’s €100 million yulan bond on LuxSE’s Euro MTF
18 October 2024 Luxembourg
Image: Concept Photo Studio/stock.adobe.com
The Luxembourg Stock Exchange (LuxSE), Orient Securities Company (DFZQ), Shanghai Clearing House (SHCH), and Euroclear Bank have successfully listed DFZQ’s €100 million Yulan bond on LuxSE’s Euro MTF.
LuxSE has become the first European exchange to list and admit this asset class to trading.
Yulan bonds give Chinese domestic entities the opportunity to access international capital markets due to the cross-border cooperation between SHCH and Euroclear Bank as domestic and foreign central securities depository infrastructures.
The aim of these bonds is to further facilitate investment flows between international investors and Chinese issuers, and thereby expand financing options for chinese companies.
Wang Weiqiang, deputy general manager at Shanghai Clearing House, says: “This successful listing proves that yulan bonds are in line with international market regulation and practice, and will help improve market liquidity of yulan bonds and advance its price discovery function.
“In the next step, under the guidance of the regulatory authorities, Shanghai Clearing House will continue to optimise the business mechanism of yulan bonds together with our market infrastructure and institutional partners, to provide safe and high-efficiency infrastructure services for domestic and foreign issuers and investors, and contribute to the high-level opening up of China’s financial market.”
Lu Weiming, president of Orient Securities Company, comments: “The listing of the first Euro-denominated yulan bond marks a milestone in DFZQ’s pioneering efforts toward further financial market opening-up and high-level development in the bond market, especially in 2024, a critical year to the 14th Five-Year Plan.
“We would like to express our gratitude to Luxembourg Stock Exchange, Shanghai Clearing House and Euroclear Bank, as well as all the investors who have consistently shown exceptional support for us. Going forward, DFZQ will continue to contribute to the development of a robust financial industry.”
LuxSE has become the first European exchange to list and admit this asset class to trading.
Yulan bonds give Chinese domestic entities the opportunity to access international capital markets due to the cross-border cooperation between SHCH and Euroclear Bank as domestic and foreign central securities depository infrastructures.
The aim of these bonds is to further facilitate investment flows between international investors and Chinese issuers, and thereby expand financing options for chinese companies.
Wang Weiqiang, deputy general manager at Shanghai Clearing House, says: “This successful listing proves that yulan bonds are in line with international market regulation and practice, and will help improve market liquidity of yulan bonds and advance its price discovery function.
“In the next step, under the guidance of the regulatory authorities, Shanghai Clearing House will continue to optimise the business mechanism of yulan bonds together with our market infrastructure and institutional partners, to provide safe and high-efficiency infrastructure services for domestic and foreign issuers and investors, and contribute to the high-level opening up of China’s financial market.”
Lu Weiming, president of Orient Securities Company, comments: “The listing of the first Euro-denominated yulan bond marks a milestone in DFZQ’s pioneering efforts toward further financial market opening-up and high-level development in the bond market, especially in 2024, a critical year to the 14th Five-Year Plan.
“We would like to express our gratitude to Luxembourg Stock Exchange, Shanghai Clearing House and Euroclear Bank, as well as all the investors who have consistently shown exceptional support for us. Going forward, DFZQ will continue to contribute to the development of a robust financial industry.”
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