Luxembourg
20 October 2016
Reporter: Stephanie Palmer

Clearstream and HSBC in CIBM collaboration


HSBC and Clearstream have paired up to offer Clearstream customers access to the China Interbank Bond Market (CIBM).

Clearstream’s overseas institutional investor customers will gain access to the bond marketplace, with HSBC acting as the onshore bond settlement agent and offering trade execution, settlement and custody services in the CIMB.

According to HSBC, the partnership is intended to increase foreign participation in the Chinese bond market, which is the third largest fixed-income market in the world, with a size of RMB 54 trillion ($8 trillion).”

Ian Banks, head of HSBC Securities Services for Asia-Pacific, said: “A deep and liquid domestic bond market is a key stepping stone to achieving China’s ambition of making the RMB a truly global currency.”

“Partnering with Clearstream places us in an excellent position to help foreign institutional investors tap into opportunities in CIBM.”

Philip Brown, co-CEO of Clearstream Banking, said: “This development coincides with an important milestone, the inclusion of the RMB into International Monetary Fund’s special drawing rights currency basket, which is expected to boost investors' demand for what is already the third largest bond market in the world.”

“This also represents our focus on Asia and will enable us to offer our clients an attractive and efficient solution to build and further develop their exposure to China's onshore bond market."

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