BNP Paribas Trust Company in Hong Kong Now Live

BNP Paribas Securities Services’ is now live with its trust company in Hong Kong.

The launch completes the full service offering of global custody, fund administration, core transfer agent and trustee services, which BNP Paribas providers to international and local fund managers.

The launch follows the diversification by international investors of their asset allocation together with an increasing appetite for high growth asset classes, in particular renminbi (RMB), leading to more international cross border fund distribution. The provider notes that on the one hand Asian fund houses are making more use of their Hong Kong subsidiaries while on the other, large international asset managers are shifting to Hong Kong domiciled funds such as Renminbi Qualified Foreign Institutional Investor (RQFII) products.

The RQFII is a new policy initiative of the Mainland authorities, which allows qualified RQFII holders to channel renminbi funds raised in Hong Kong to invest into the Mainland securities markets. RQFII holders may issue public or private fund or other investment products using their RQFII quotas.

Mostapha Tahiri, head of asset & fund services in Asia Pacific at BNP Paribas Securities Services said: “Hong Kong is the second hub for global distribution in Asia of Ucits products allowing asset managers to expand regionally and target European institutional investors. But for asset managers to be successful in such a complex region, they must be locally present with both onshore and offshore product strategies.

“At BNP Paribas, we are already leader in Europe in servicing Ucits products, and now with our trust company live, BNP Paribas Hong Kong can provide a complete range of fund services based on our local and regional operating model.”