BNP Paribas Granted China Cross-Border Custody License
BNP Paribas announced it had been granted a license to provide custody services for China’s Qualified Foreign Investor (QFI) scheme. This means BNP Paribas can now directly support foreign institutional investors across the full scope of schemes allowing access to China’s equities and bond markets, in addition to providing a full range of foreign exchange services.
BNP Paribas China Limited was one of the first foreign banks to be granted a bond settlement agent license for the China Interbank Bond Market (CIBM) in 2016. BNP Paribas Securities Services Hong Kong also facilitates participation, via a special segregated account, in China’s Stock Connect schemes, as well as Bond Connect through its membership of the HKMA Central Moneymarkets Unit.
CG Lai, Chief Executive Officer, BNP Paribas China Limited said: “This newest QFI license 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.”
Philippe Kerdoncuff, Head of BNP Paribas Securities Services, China said: “As constraints on foreign participation in China’s markets abate, we expect a wave of renewed interest from offshore institutional investors. The license 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.”