HSBC China Secures Custody Services License Amid Capital-Market Opening
The Significance of HSBC China's Custody Services License
On October 25, the China Securities Regulatory Commission granted HSBC China a domestic fund custody license, a pivotal step towards strengthening its cross-border securities services. This milestone enables HSBC to offer custody services to onshore funds managed by asset managers situated in mainland China.
Market Opportunities for Foreign Investors
The granting of this license caters to foreign institutional investors eager to tap into China's booming capital market, marked as the second-largest globally. According to Fiona Horsewill, global head of securities services at HSBC, this diversification in asset allocation supports long-term capital strategies.
Expanding Custody Services Portfolio
- HSBC's new license augments its existing custody services for locally domiciled mutual funds, private funds, and private asset-management schemes.
- HSBC is now the fifth foreign bank to secure such a license, following institutions like BNP Paribas and Standard Chartered Bank.
HSBC's Growth in China
Mark Wang, HSBC China’s president and CEO, remarked on the license as a significant step in market participation, aiming to capture the burgeoning opportunities within mainland China's US$4.49 trillion mutual fund market and boost its business development strategies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.