BNP Paribas is to provide custody services for China’s Qualified Foreign Investor scheme.
Through the initiative, BNP Paribas’ foreign institutional investors will be able to access China’s equities and bond markets. BNP Paribas will also offer a full range of foreign exchange services.
BNP Paribas China was one of the first foreign banks to be granted a bond settlement agent licence for the China Interbank Bond Market in 2016.
BNP Paribas Securities Services Hong Kong also facilitates participation, via a segregated account in China’s Stock Connect schemes, as well as Bond Connect through its membership of the Hong Kong Monetary Authority central moneymarkets unit.
CG Lai, CEO of BNP Paribas China Limited, says: “This newest QFI licence complements our cross-border product offering and will help to attract even more foreign investment into China’s bond and equity markets, which are fast becoming amongst the most important markets globally. BNP Paribas is undoubtedly one of the best-positioned foreign banks to support institutional investors in the China market.”
Philippe Kerdoncuff, head of BNP Paribas securities services, China comments: “As constraints on foreign participation in China’s markets abate, we expect a wave of renewed interest from offshore institutional investors. The licence also closely follows the removal of quotas and expansion of scope for investments under the QFI scheme, making this an exciting time for new entrants to the onshore custody space.”
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