APX Chief Operating Officer, David Lawrence: “A critical facilitator of capital flows between Australia and China will be a trading and settlement platform allowing APX listed securities to be traded (and settled) in both Australian and Renminbi denominations.”
In an important step towards its goal to build capital flows and act as a gateway between Australian and Asian capital markets, Asia Pacific Stock Exchange (APX), a securities exchange in Australia with a market licence granted by the Australian Securities & Investments Commission has signed a Memorandum of Understanding (MOU) with the China Beijing Equity Exchange (CBEX).
APX and CBEX also launched the “CBEX to APX Express Channel”, a program designed to promote Chinese companies across China to list on APX, guide qualified institutional investors to invest in companies listed on APX, and build a bridge of projects and capital.
CBEX is a multi asset class exchange that is run by the Government of Beijing and has particular strengths in commodities, resources and bringing state owned enterprises to market. In 2014 APX signed an MOU with one CBEX platform, the China Beijing International Mining Exchange, and the new MOU broadens the relationship to encompass more than 10 of CBEX’s trading platforms. CBEX has developed into one of China’s leading equity exchange market with transaction value of RMB 1.02 trillion (approx A$200 billion) in 2013.
The Australian Parliamentary Secretary to both the Foreign Minister and the Minister for Trade and Investment, The Honourable Steven Ciobo, the Australian Ambassador to China, Ms Frances Adamson, and the Vice Director of the Beijing Finance Bureau, Ms Feng Zheng, witnessed the signing of the MOU at a ceremony in Beijing on Friday May 8th.
AIMS Group Chairman and APX Deputy Chairman George Wang (王人庆) said, “APX is delighted to extend our agreement with the China Beijing Equity Exchange to encompass all their operations and we note the synergies in our mutual focus on the resources, technology, agriculture and real estate sectors. We see great potential for co-operation as CBEX continues to bring China enterprises to the market and APX builds its platform, bridging the gap between Australia and China.”
“CBEX will take its full advantage of the agreement to cultivate and guide domestic firms to list on APX, as well as guide certificated institutional investors in CBEX to invest in companies listed on APX” said Mr Ruhuan Wu, President of CBEX. “In the future, CBEX will make full use of its advantages to introduce potential high quality listing projects and participate in roadshows held in China” he said.
APX also emphasized the need for governments and regulators to help build the necessary infrastructure to encourage trade and capital flows between China and Australia, with APX Chief Operating Officer, David Lawrence, noting in his speech at the ceremony, “A critical facilitator of capital flows between Australia and China will be a trading and settlement platform allowing APX listed securities to be traded (and settled) in both Australian and Renminbi denominations. APX is well advanced in preparing for this and is the natural home platform for RMB/AUD dual currency trading and transactions.”