Chinese companies may list renminbi shares on Frankfurt bourse in 2016

Benefits of transactions in yuan are publicized at an international financial exhibition in Wuhan, Hubei province. [Photo/China Daily]

Chinese firms may be able to list yuan-denominated shares in Frankfurt next year, allowing industry giants such as SAIC Motor Corp to access European investors. The move would further open China's economy to international markets.

The so-called D shares would list on China Europe International Exchange, or CEINEX, a joint venture between Deutsche Boerse AG and two Chinese exchanges that went live last month, according to the German exchange operator. The platform has traded an average of 18.3 million yuan ($2.8 million) a day since it opened on Nov 18.

Trading on new exchanges and in new products starts slowly, and some instruments never catch on with traders. Right now, CEINEX only hosts exchange-traded funds and bonds. The platform plans to add more products next year, including single stocks such as depository receipts and possibly derivatives.

While big Western exchanges in New York and London already list Chinese companies, CEINEX is offering something different: shares denominated in yuan. The opportunity for firms to raise cash in Europe in their own currency instead of pounds or euros shows how China is seeking a more important role in global finance for yuan (also known as renminbi).

Some Chinese mainland firms already have listings in Hong Kong. They call the securities, which are priced in Hong Kong dollars, H-shares. Hong Kong Exchanges & Clearing Ltd started hosting mainland firms on its market more than 20 years ago. The idea was to enable mainland companies to raise capital in a convertible currency.

For Deutsche Boerse, Asia is a focus for its new chief executive, Carsten Kengeter, who worked in Hong Kong for part of his career at Goldman Sachs Group Inc.

The Frankfurt-based exchange has a second joint venture－for interest-rate and currency trading－in the works with the People's Bank of China. That market may launch next year.