Euroclear Opens Gateway to China Domiciled Funds
Brussels and Hong Kong, 09 September 2015 - Euroclear Bank, the Brussels-based international central securities depositary (ICSD), has opened an account with Hong Kong’s Central Securities Depositary, the Central Moneymarkets Unit (CMU).
This opening coincides with the recent announcement by Hong Kong’s Securities and Futures Commission and the China Securities Regulatory Commission on the implementation principles of the Mainland-Hong Kong Mutual Recognition of Funds (MRF)initiative. The membership enables Euroclear to participate in MRF through CMU.
The MRF will allow eligible Hong Kong-domiciled funds to be sold to retail investors in China, and qualifying Chinese funds will also be available to the retail investor base in Hong Kong. In addition to the existing availability of Hong Kong-domiciled funds, Euroclear Bank clients will be able to access China-domiciled funds through Euroclear’s automated fund processing platform - FundSettle.
Ivan Nicora, CEO Hong Kong Branch, Regional Head, Asia-Pacific, Euroclear commented: “The ability to gain access to China domiciled funds under the MRF arrangement is a major development. This initiative reinforces our Asia growth strategy as we continue to support the development of the MRF as we endeavour to facilitate an international link to this market. We expect demand to grow significantly in the next three to five years.”
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About Euroclear Bank
Euroclear Bank provides settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds. Serving major financial institutions located in more than 90 countries, Euroclear Bank, based in Brussels, is part of the Euroclear group. Euroclear Bank is rated AA+ by Fitch Ratings and AA by Standard & Poor’s.
As well as Euroclear Bank, the Euroclear group includes Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 634 trillion in securities transactions in 2014, representing 182 million domestic and cross-border transactions. By June 2015, the group held EUR 28 trillion in assets for clients.
FundSettle, operated by Euroclear Bank, serves as a single access point for fund investors to process subscriptions, redemptions, transfers and switches, covering more than 90,000 investment funds worldwide and over 700 transfer agents.