Australian Securities Exchange (ASX) has signed an agreement with Bank of China to offer Renminbi (RMB) settlement service to the Australian and Chinese financial markets by the middle of the year.
The new service will allow Australian companies to take or make payments with their Chinese investment and trading partners through market infrastructure.
According to ASX, the benefits of the new service will include increased accessibility, lower costs and risk, and new growth opportunities.
Elmer Funke Kupper, managing director and CEO of ASX, said: "ASX believes this new strategic relationship with the Bank of China will benefit both our countries, and provide a platform for the development of bigger and more diverse products and services in the RMB."
Yue Yi, executive vice president of Bank of China, added: "The initiative aims to make it convenient for Chinese enterprises entering Australia to issue debt as well as public shares, and also to broaden the width and depth of Australia’s offshore RMB markets."