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January 10, 2017

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Next stop: D shares in Frankfurt

CHINESE companies may be allowed to sell D shares on a Germany-based exchange in 2017, sources with the Shanghai Stock Exchange have revealed.

The proposal is now in the hands of the Frankfurt-based China Europe International Exchange, or CEINEX.

CEINEX is an offshore yuan-denominated assets trading center that was created in December 2015 by the Shanghai bourse, German Borse Group and the China Financial Futures Exchange.

The sources said blue-chip manufacturers listed on China’s A-share market with a global development strategy are likely to be selected as the first to issue D shares. More companies will be encouraged to trade as the D-share market develops.

Firms will need approval from both Chinese and German regulators to issue D shares, the sources said.




 

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