Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Latest news
  3. Deutsche Bank joins ranks of custodians offering securities lending via QFII scheme
Latest news
Deutsche Bank joins ranks of custodians offering securities lending via QFII scheme
05 January 2021 Hong Kong
Reporter: Natalie Turner

Image: TTstudio/adobe.stock.com
Deutsche Bank has facilitated a margin trading and securities lending transaction under China’s expanded Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQII) schemes.

A QFII licence allows international investors to participate in mainland China's stock exchanges. As of November 2020, the abilities of licenced investors expanded to include securities finance and short selling activities.

The new rules have also lowered entry requirements and simplified procedures under the combined quota-free QFII and RQFII.

Deutsche Bank China has confirmed it supported a qualified foreign investor as its China onshore custodian bank on the first day of trading under the new rules.

According to Deutsche Bank, it offered a full suite of custody services including account opening, asset custody, cash transfer and regulatory reporting, and helped in completing a smooth transaction on the first trading day of margin trading and securities borrowing under the new rules.

On 28 December 2020, the China Securities Depository and Clearing Corporation opened the application and registration channel for margin securities accounts.

Tony Chao, head of securities services Greater China and head of securities services sales in North Asia at Deutsche Bank, says: “The opening of margin trading and securities borrowing through the QFII/RQFII scheme expands the investment product scope and increases the diversification of investment strategies available to foreign investors. It also helps in improving fund efficiency, providing investors with greater flexibility to investment strategies and portfolio execution.”

The German bank also received a domestic fund custody licence recently and says it is also one of the most active foreign settlement agents in the China Interbank Bond Market.

Deutsche Bank offers custodian services in more than 70 major markets globally, including 12 markets with dedicated teams in the Asia Pacific region.

Other global banks to take advantage of the new rules to help clients engage in securities lending include, HSBC, Standard Chartered and Citibank.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today