The three joint venture partners intentionally chose Frankfurt as the financial platform from which to offer their service in a European regulatory environment and in the European and American time zones. The money flows resulting from securities settlement are to be channelled through the clearing infrastructure provided in Frankfurt.
In my view, China’s real economic development and the launch of the China Europe International Exchange will give rise to additional volumes of RMB payments. The German banking industry will decide which channels shall be used to clear RMB payments. Nevertheless, I would wish that the German banking community will support the German financial market to become an RMB hub.