SECURITIES SERVICES: CHINA’S CAPITAL MARKETS


We are seeing a growing number of central banks and sovereign wealth funds express an interest in China


Tony Chao, Head of Securities Services,


Greater China, Deutsche Bank


investment products. In December 2020, Deutsche Bank successfully facilitated a margin trading and securities borrowing transaction under the new rules, on behalf


of a major QFI client. “Deutsche Bank’s global network makes it easier to support cross-border investment flows,” explains Chao. “Not only can we help domestic investors with their overseas requirements, but we can also support offshore clients when accessing China too.”


China: the recovery starts here As many countries continue to grapple with Covid-19, China is one of the few that has successfully limited its impact. Liberalising measures and a balanced approach towards enabling inward and outward investment are having their intended effects. Assuming these policies continue, it may not be long before the RMB is fully internationalised and becomes a key central bank reserve currency and major settlement currency.


As the country forges ahead with its 14th Five-Year Plan, which was unveiled in March 2021, its future dependencies on


global markets may look different in 2025 compared to 2001, when the country joined the WTO. One thing that is clear, however, is that in the race to economic recovery, foreign investors will be looking very closely at this promising market. At the same time, the growing wealth of China’s domestic population should prompt more external investment as the rules around how citizens invest are further relaxed.


Sources 1 See https://bit.ly/3hkW5Nt at worldbank.org 2 See https://bit.ly/3hm8ot5 at corporates.db.com 3 See https://bit.ly/3oeqRsR at scmp.com 4 See https://bit.ly/3oDgcbo at hkex.com.hk 5 See https://bit.ly/3tHxzsE at chinabondconnect.com 6 See https://bit.ly/3tJ2dBY at simmons-simmons.com 7 See https://bit.ly/3ya2MI7 at deloitte.com


8 See https://bit.ly/3ffki6y at db.com 9


See https://on.ft.com/3vX3aIa at ft.com


10 See https://bit.ly/3bmoHC8 at fundselectorasia.com 11 See endnote 10


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