The FINANCIAL — Euronext on October 5 announced that is has signed a Memorandum of Understanding (MOU) with Haitong Bank S.A. with the aim of it expanding its membership role and activities on the Portuguese market as well as more broadly on the Euronext markets. In particular, the two parties will identify business opportunities in listings and the co-development of products and services.
On 7 September 2015, Haitong acquired Banco Espirito Santo de Investimento S.A., now named Haitong Bank S.A., a market member of Euronext Lisbon. The objective of this MOU, signed by Haitong and Euronext, is to improve the process for Chinese investors or Chinese investment firms to gain access to Euronext markets and products with a view to improving entry into European capital markets. The two companies will work together to introduce RMB denominated fixed income securities, launch innovative listings products in acceleration of the RMB internationalization process and explore ways to cooperate in promoting Chinese floatations on Euronext Markets (IPOs and dual listing). Furthermore, Haitong willendeavourto produce research on companies listed on Euronext markets.
Euronext continues to build its position as a leading capital raisingcentrein Europe for RMB. Already in 2015 it has raised RMB 6.5 billion on its markets, more than doubling the RMB 2.5 billion raised in 2014. In 2015, Euronext has signed an MOU with the Schenzen Stock Exchange to enhance the development of Exchange Traded Products (ETPs) in China and on the Euronext markets, the Dalian Commodities Exchange to carry out joint research into the promotion, distribution, trading and development of commodity products, and a partnership with the Shanghai Stock Exchange to enhance the promotion and marketing of its cash, derivatives, commodities and index data in China, according to Euronext.
Lee Hodgkinson, Head of Markets and Global Sales at Euronext, said, “Our agreement with Haitong is another key step in the development of our offering for outbound Chinese investment and RMB products, an important growth area for Euronext. We are delighted that Haitong, our largest client in the Portuguese market, has chosen to support us in the development of business opportunities and we will work hard to ensure the partnership is fruitful for both parties.”
Luis Laginha, CEO of Euronext Lisbon, said, “Euronext works constantly to respond to the needs of the global and local economy, and the signature of this MOU with Haitong is another example of how we are responding to our clients’ needs. This MOU will provide our clients with opportunities to create new products in the increasingly important RMB currency, and we look forward to developing a closer partnership with Haitong to enhance Chinese community access to European capital markets.”
José Maria Ricciardi, CEO of Haitong Bank, S.A., said, “Chinese Capital Markets and their dynamism are a key component of the very interesting potential for cross-border financing and investment opportunities.
I strongly believe that this MOU between Haitong Bank and Euronext will reinforce our mutual co-operation in meeting the important challenges and opportunities for our clients.”