Clearstream will offer settlement and custody services for China A-Shares from 17 November, in response to the Shanghai-Hong Kong Connect Program, which will broadens investors’ access to Chinese markets.
The joint venture of the Shanghai Stock Exchange (SSE) and the Hong Kong Stock Exchange (HKSE) aims to open up Chinese investment opportunities to non-residents, as long as they’re trading in China A-Shares. That is, shares registered on the SSE and denominated in renminbi.
Previously, these investors would have to apply for qualified foreign institutional investor (QFII) status or renminbi qualified foreign institutional investor (RQFII) status.
It is hoped that the programme will allow Chinese companies to broaden their investor base, while investors should benefit from access to desirable assets.
Clearstream will launch its new services simultaneously, and will offer clearing and settlement for China A-Shares from the programme’s launch on 17 November.
The services will work through Clearstream’s Hong Kong link at Citibank NA.
Anne-Pascale Malréchauffé, head of networking management at Clearstream, said: “It is a cornerstone of Clearstream’s strategy to support our customers’ increasing demand to invest in Asia and to facilitate their business in those markets. With this program we are now able to provide our customers with investment opportunities in China A-shares, a highly sought-after asset class.”
“We have been supporting the internationalisation of the renminbi since the early days and welcome this program as a further step towards a further development of an international renminbi market and the Chinese capital markets in general.”
