HSBC has successfully overseen the first T+3 trade in the China Interbank Bond Market (CIBM).
Facilitation of the trade follows the extension of CIBM’s bond settlement cycle for foreign institutional investors by China Central Depository and Clearing, Shanghai Clearing House, and China Foreign Exchange Trade System.
As a result, overseas institutional investors are now able to select the T+3 settlement cycle for cash bond trading, repo, and bond borrowing and lending.
Ivy Zhang, executive vice president and co-head of global markets at HSBC China, commented: “We believe this development demonstrates Chinese regulators’ commitment to further opening up the financial market to make domestic capital markets more accessible to international investors.”
“We foresee the momentum of foreign entry to the worlds’ second largest bond market to continue. With our profound experience in direct custody and bond settlement agent services, HSBC China will continue to provide best-in-class support to our clients in capitalising on China’s growth story.”
Patrick Wong, head of business development and client management, China, at HSBC Securities Services, added: “Foreign investors’ participation has increased significantly with the continuous relaxation on CIBM in the trading mechanism and foreign exchange process, as well as settlement cycle.”
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