Standard Chartered supports clients on Bond Connect debut

Standard Chartered Bank has successfully supported our investor clients, including China Merchants Securities, GF Global Capital, Manulife Asset Management and Taikang Asset Management (Hong Kong), on the first trading
day of the Bond Connect programme by acting as a market maker in China and offering settlement, custody and FX services in Hong Kong.

The bank was also mandated as Special Underwriter in China and Joint Global Coordinator in Hong Kong for Agricultural Development Bank of China’s RMB 16 billion bond issuance, the first primary offer out of the Bond Connect scheme.

Benjamin Hung, Chief Executive Officer for Greater China and North Asia at Standard Chartered, said: “The successful launch of the Bond Connect marks a significant milestone for China’s opening up of its onshore capital markets.

The scheme not only provides an additional channel for international investors to tap into the world’s third largest bond market, but also reinforces Hong Kong’s strategic importance as the gateway between China and the rest of the world.”

Mary Huen, Chief Executive Officer of Standard Chartered Hong Kong, said: “Demand for Chinese bond holdings has been increasing since the RMB’s inclusion into the SDR basket and China’s growing presence in global bond indices. With improved access to onshore interbank bonds, we expect foreign holdings of China onshore bonds
to increase by RMB 100 billion in the second half of 2017, reaching RMB 950 billion by year-end. From bond trading and settlement, to access to onshore RMB FX market and bond custody, our full suite of services would make gaining access to China’s interbank bond market an effortless task.”

“China’s bond market is a market that is too big to be missed. We welcome the launch of the Bond Connect which gives overseas investors a simple, quick and easy way to invest into China’s debt market,” said Endre Pedersen, Chief Investment Officer, Fixed Income, Asia (ex-Japan), of Manulife Asset Management. “We are very pleased to be
working with Standard Chartered, our long-term banking partner, for services including trading, FX conversion to settlement and custody.”