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The Hongkong and Shanghai Banking Corporation Ltd (HSBC) has received full approval from Chinese regulators to offer custodian services to qualified foreign institutional investors (QFIIs) in the country's A-share market.
With an approval from the People's Bank of China, HSBC has secured further approvals from the China Securities Regulatory Commission and the State Administration of Foreign Exchange Control, banking sources said.
Dicky Yip, chief executive of China Business for HSBC, said, "As HSBC is the only foreign bank currently providing onshore B-share custodian services in the mainland, we are in a better position to offer immediate services to our clients."
He said their clients would also benefit from HSBC's expertise and knowledge gained from their experience as a QFII custodian in Taiwan and the Republic of Korea for over 10 years.
HSBC has a market share of over 50 percent in custodian services for China's B-share market, which has a capitalization of approximately 10 billion US dollars.
This compares with a capitalization of 500 billion US dollars for China's A-share market, to which foreign investors will now have access by applying for QFII status through a QFII custodian.
With full approval now obtained for its QFII custodian license, HSBC can start handling applications from overseas investors for QFII status.
(Xinhua News Agency March 19, 2003)
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