HSBC announced today a partnership with Clearstream to enable customers of the international central securities depository (ICSD) to access China’s Interbank Bond Market (CIBM). HSBC acts in the capacity of onshore bond settlement agent for Clearstream’s overseas institutional investor customers, providing trading execution, settlement and custody services in the CIBM.
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 which is the third largest fixed income market in the world with a size of approximately RMB54 trillion.”
Philip Brown, Co-Chief Executive Officer of Clearstream Banking S.A., said: “We are delighted to partner with HSBC to become the first international central securities depository to offer global investors access to China’s Interbank Bond Market. This development coincides with an important milestone, i.e. the inclusion of the RMB into IMF’s SDR 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.”
Based in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services securities from over 56 markets worldwide. Its customers comprise approximately 2,500 financial institutions in more than 110 countries. With nearly EUR13 trillion in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.
HSBC is the largest international bank in China, offering foreign institutional investors a wide spectrum of securities services, including custody services, clearing and settlement of securities trading, interbank bond settlement and clearing, agency services, and futures margin depository services.