Clearstream has opened a link with the Shenzhen Securities Communication Company (SSCS) for direct connectivity of fund order routing for Mainland China-domiciled funds.
The new link between the SSCC and Vestima, Clearstream’s platform for fund services, will facilitate the direct processing of cross-border investment fund transactions between Mainland China, Hong Kong and international market participants.
Clearstream clients will also be able to send orders for Mainland China funds under the mutual recognition of funds (MRF) scheme between China and Hong Kong.
The SSCC will receive the fund orders directly for transmission to the fund register held by the China Securities Depository and Clearing (CSDC).
“It is a notable step towards opening the Chinese market for investments into domestic mutual funds and towards a further internationalisation of the Renminbi,” said Philippe Seyll, co-CEO, Clearstream Banking.
“The cooperation with SSCC supports our key objective to meet our customers’ increasing demand to invest in Asia and to facilitate their business in those markets.”
The partnership means Clearstream has become the first international fund services provider that can directly route orders from eligible Hong Kong institutional investors to the SSCC for investments into Mainland China funds.
“In order to meet the growing market demand of MRF, SSCC continues to work with international counterparts such as Clearstream to serve clients in Mainland China and Hong Kong, providing an electronic one-stop solution for the operations of mutual recognition of funds,” said Xue Ke, vice-general manager of SSCC.