News

Custodians facilitate short-selling transactions in China

Chinese stock quotesStandard Chartered and HSBC have become the first two global custodians to facilitate short-selling transactions in mainland China for overseas clients. The move comes on the back of new measures introduced by China to encourage greater participation from international investors. In September the financial regulator allowed short-selling and margin financing to be conducted by qualified foreign institutional investors (QFIIs) and RMB qualified foreign institutional investors (RQFIIs) as of December 29, 2020. HSBC and Standard Chartered are the first two custodians to get their short-selling service up and running following the regulatory approval. “The latest regulatory relaxations offer more investment instruments to QFII, among which the stock borrowing and lending have always been the most attractive ones that are frequently inquired by many overseas institutional investors,” said Rick Hu, head of securities services at Standard Chartered China. “The opening of margin financing and short-selling business through QFII/RQFII enables offshore investors to diversify their trading strategies,” said Stephen Pamberton, HSBC’s global head of product, banks and broker dealers, and securities services. Meanwhile, Citi has announced the successful completion of its first margin trading and securities borrowing transactions for QFII and RQFII clients. “These new instruments could help global investors achieve more flexible and diversified investment strategies, potentially increasing the return and providing an alternative to hedge market risk,” commented Vicky Tsai, Citi’s China Head of Securities Services. © 2021 funds global asia

Executive Interviews

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...

Executive interview: The man who made Aberdeen

Mar 04, 2021

Martin Gilbert reflects on nearly four decades as Aberdeen CEO, including what he brought to the company, his regrets at not entering into private markets earlier, and passing like ships in the...

Roundtables

Roundtable: How well geared are Japanese assets for a new world?

Jul 12, 2021

As we prepare to emerge from Covid, experts look at overcoming demographic issues through a combination of good tech and corporate governance, improving productivity and meeting an ambitious government carbon emissions reduction target. Chaired by Romil Patel.

Hong Kong roundtable: Increasing China’s prominence as an asset class

Mar 04, 2021

Our line-up of experts in Hong Kong considers the importance of fixed income ETFs, sustainability and the prospects of increasing China in the indices. Chaired by Romil Patel.