First foreign bank to receive this license
Standard Chartered Bank (China) Limited (“Standard Chartered China”) today announced that it has become the first foreign bank to be granted a domestic fund custody license by the China Securities Regulatory Commission. With this license, Standard Chartered China will be able to directly participate in and provide custody-related services to investment products offered by domestic funds and asset managers in China.
Bill Winters, Group Chief Executive of Standard Chartered, said: “China is of strategic importance to Standard Chartered. We are honoured to be the first international bank to be granted this license, which coincides with the Bank celebrating its uninterrupted operations in China for the past 160 years. With the inclusion of Chinese shares by major world indices, China is already being recognised as a major financial market. We are excited to be part of this process as we work closely to support our clients in their custody needs.”
China is the third largest equity and bond market in the world, with total market size close to USD20 trillion. With the continued expansion of China’s economy and its corresponding growth in personal wealth, there is a growing demand for more sophisticated investment products and professional services. In addition, the recent pension plan reform and introduction of unified asset management industry guidelines, coupled with the expected introduction of bond futures and other derivatives products, as well as increased participation by international asset managers through set up of Wholly Foreign Owned Enterprises, China’s capital markets will evolve rapidly in terms of scale, diversity and differentiation.
Margaret Harwood-Jones, Global Head, Securities Services, Transaction Banking, Standard Chartered, added: “As a leading international custodian and an active market participant, it is our commitment to bring our integrated solutions, risk control framework and best market practices into one of the world’s fastest growing capital markets. With this license, we are well-positioned to help investors navigate and capitalise on the opportunities in China’s rapidly growing capital market.”
Jerry Zhang, Chief Executive Officer and Executive Vice-Chairwoman of Standard Chartered China, said: “This is a big step forward in the further opening up of China’s domestic financial markets and a testament to our commitment to supporting China’s financial reform and innovation. We belonged to the first batch of banks in China providing onshore B-share custodian services in 1992 and, since then, we have been actively involved in the opening up of China’s capital markets, providing one-stop custody services for Chinese financial institutions and making continuous contributions to the sustainable development of China’s economy.”
Standard Chartered has a long-standing history in China and was among the first batch of foreign banks to be locally incorporated in China in 2007. With more than USD900 billion of assets held under custody across 40 markets in Asia, Africa and the Middle East, Securities Services continues to be key to Standard Chartered’s Transaction Banking business.
For further information please contact:
Standard Chartered Bank
Tel: +65 6596 6001