Baker + McKenzie Sees Benefits in Frankfurt Clearing House for China Trade

Baker + McKenzie Sees Benefits in Frankfurt Clearing House for China Trade – Frankfurt, Germany, 28 March 2014 – During his state visit in Berlin, Chinese president Xi Jinping signed a letter of intent to set up a renminbi clearing house in Frankfurt am Main with the Federal Bank and the People’s Bank of China. Global law firm Baker & McKenzie has dealt with the topic intensively and has launched an initiative together with the German Mittelstand to emphasize the advantages of such a clearing house. It will mainly consider the special needs of small and medium-sized enterprises in trade and transaction business with China.

Baker & McKenzie is also a member of a working group, coordinated by the Hessian Ministry of Economy, Energy, Transport and Regional Development (HMWEVL), which is preparing joint steps to establish Frankfurt as the center of renminbi trade in Europe. The Federal Government, Bundesbank, the state of Hesse, the region and the city of Frankfurt, the financial center players and corporates have acted in concert on the renminbi hub issue.

“The establishment of a renminbi clearing house in Frankfurt is a big step for the internationalization of the RMB. This unique setting in the euro area will further underline Germany’s position as trading and transaction partner number one of the People’s Republic of China in the region,” comments Dr. Thomas Gilles, head of the China Desk and chairman of Baker & McKenzie’s EMEA-China Group.

In addition to simplifying trade relations between the euro area and China, this development also opens up possibilities of new capital market products, such as the so-called “dim sum bonds” which would then also enable issuance thereof directly in Frankfurt.

Last year, Baker & McKenzie received the award as “Law Firm of the Year 2012 for M&A” by the renowned legal directory in Germany, JUVE. At the time, the firm was already honored as one of the market leaders for German-Chinese takeover transactions.

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