Euronext listed its first renminbi denominated money market exchange traded fund in its Paris market on Tuesday, demonstrating another milestone of the Eurozone's growing offshore renminbi activities.

Known as the Commerzbank CCBI RQFII Money Market UCITS ETF, the new ETF is jointly created by China Construction Bank International and Commerzbank, with CCBI as its investment manager. CCBI is a subsidiary of China Construction Bank.

The Commerzbank CCBI RQFII Money Market UCITS ETF offers investors exposure to interbank bond market in China, which is otherwise not accessible to foreign investors due to China's capital market controls.

UCITS stands for Undertakings for Collective Investments in Transferable Securities. It provides a single European regulatory framework for an investment vehicle, which means it is possible to market the vehicle across the European Union without worrying which country it is domiciled in.

RQFII is the Renminbi Qualified Foreign Institutional Investor program, which allows select Chinese financial firms to establish renminbi-denominated funds in international markets for investment in the mainland.

The CCBI RQFII Money Market UCITS ETF was first listed on the London Stock Exchange in March.

On the Euronext platform, the ETF will be available for trading in both renminbi and euros and will be settled exclusively with Euroclear, the International central securities depository, in multiple currencies.

In addition, Euronext signed a Memorandum of Understanding (MOU) with CCB to develop a strategy to enhance the bank's access to European capital markets.

The MOU will explore how the two companies can further develop CCB's access to European Capital markets. Areas under discussion include the possibility of CCBI becoming a trading member of Euronext markets; easing access to Euronext products within CCB; and renminbi payment and settlement structures.

It is expected that the cooperation between the two companies will further push forward renminbi internationalization, and will enable Paris to become an offshore renminbi business centre. The MOU will also pave the way for Chinese enterprises to come to Europe for finance, investment and commodities trading.

Wang Hongzhang, chairman of the board of directors of CCB said that the cooperation with Euronext marks an important milestone in CCB's internationalization strategy.

"We believe, not only does this allow us to gain further access to the European capital markets, internationalize our operations, and provide our clients with additional channels to invest in Euronext Paris, it will also encourage an extensive use of renminbi products by French enterprises, financial institutions and investors", Wang said.

Jos Dijsselhof, Interim Chief Executive of Euronext said that the renminbi is increasingly used in cross border transactions so this is an exciting step for Euronext.

"We are very honoured to develop a new relationship with CCB to develop cooperation between the two companies and to reinforce our Euronext name in Asia," Dijsselhof said.