BNY Mellon to accept Chinese bonds as collateral on tri-party platform
The move comes as international investors look to significantly increase their access to China’s $13.9 trillion bond market.
The move comes as international investors look to significantly increase their access to China’s $13.9 trillion bond market.
Standard Chartered hopes the move will boost acceptance of Chinese debt as collateral for its foreign investor clients.
Research from Standard Chartered highlighted that China's FX requirements for custodians is one of the last obstacles for foreign investment to take off.
The first T+3 trade occurs on China Interbank Bond Market (CIBM) after ‘important step’ to extend settlement cycle.
Speculation is mounting as to whether additional access schemes will be rolled out between China and other major regional markets.
The adoption of the new settlement system could significantly boost foreign investment into the Chinese domestic bond market.
China's inclusion into the MSCI Emerging Markets Index has driven a dramatic increase in foreign institutions opening up special segregated accounts (SPSAs).
Positive sentiment to investing in China has largely been influenced by clearer and more flexible access schemes for foreign investors.
HSBC will act as the custodian and fund administrator to one of the first UCITS funds to invest in China's Bond Connect scheme.