China Central Depository & Clearing and Euroclear sign MOU

Brussels/Shanghai – 9 September 2019 – Euroclear Bank, the Brussels based international central securities depository (ICSD) has signed a memorandum of understanding (MOU) with China Central Depository & Clearing (CCDC).

The intention of this collaboration is to work towards enhancing cross-border services and eventually establishing an efficient link to support further opening of the Chinese Interbank Bond Market.

The two parties will also explore opportunities to provide cross-border collateral management services which will aim to promote the use of RMB-denominated securities as collateral in the international financial market.

Ruqing Shui, Chairman of China Central Depository & Clearing said: "This MOU is a strong first step towards our goal of easing access for investors to the China Interbank Bond Market without changing the way they access other markets. What’s more, with our cooperation, there is possibility that RMB assets can be used as eligible collateral in more business scenarios, to enrich the collateral pool of global investors when they experience HQLA shortage.”

Valerie Urbain, CEO Euroclear Bank commented: “We are very pleased to have signed this MOU with China Central Depository & Clearing. This signifies a true commitment towards opening a cross-border link and explore new opportunities which will benefit the global capital markets. This partnership further underpins our wider Asia strategy which spans nearly 30 years in the region.”

Find out more on www.chinabond.com >

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 791 trillion in securities transactions in 2018, representing 230 million domestic and cross-border transactions and held EUR 28.8 trillion in assets for clients.

China Central Depository & Clearing Co., Ltd. is the main CSD in China’s interbank bond market. It safekeeps 61 RMB trillion of bonds (85 % market share), including about 100% of China’s sovereign and quasi-sovereign bonds. CCDC supports the implementation of China’s monetary and fiscal policies, and provides bond issuance platform, central registration, depository and settlement services, collateral management services, and bond pricing products to satisfy the various needs of the market. CCDC is also a gateway for China’s financial liberalization. By the end of June 2019, the number of foreign accounts at CCDC reached 914. The balance of these accounts (RMB 1.64 trillion) represented 95% of foreign investors’ bond investments in China.