Stock Connect (Shanghai-Hong Kong and Shenzhen-Hong Kong)
Stock Connect is a mutual market access scheme giving Hong Kong and Mainland China investors access to each other’s stock markets via their own brokers.
To help clients in Hong Kong to invest in Mainland China as part of the Stock Connect programme (known as “Northbound trading”), BNP Paribas’ custody business (BNP Paribas Securities Services) and brokerage business (BNP Paribas Securities (Asia) Ltd.) have joined efforts in launching an integrated solution which allows clients to make their investments in a seamless manner.
For more details about the Shanghai-Hong Kong Stock Connect, please click here for the White Paper.
To learn more about the expected launch of the Shenzhen-Hong Kong Stock Connect, please click here for the Market Brief.
China Interbank Bond Market
BNP Paribas (China) Limited has the Type A license to operate and provide full agency services (trade execution, settlement and local custodian) to foreign institutions, accessing the China Interbank Bond Market (CIBM), the world’s third largest bond market after the US and Japan.
“A Grand Opening” , a Global Markets and Securities Services joint whitepaper explains the impact of this deregulation on foreign institutions in accessing the world’s third largest bond market, worth some RMB49 trillion (US$7.7 trillion). The report explains and weighs the opportunities for long term investors to consider. Practical operational challenges are also addressed from repatriation rules to tax and prefunding rules.
As one of the four foreign banks with the Type A license, direct access could not be simpler. CIBM accounts for the bulk of debt securities (around 90% of the total market cap), the relaxation of regulations have unleashed many new opportunities, especially if you are interested in direct access to the onshore interbank bond market in China.
Please download the China Interbank Bond Market White Paper below for more details and contact our HK or Shanghai teams today: