Euroclear SA/NV and the China Government Securities Depository Trust & Clearing Co. have signed a Memorandum of Understanding to establish a framework for closer co-operation between the companies.
Under the terms of the non-binding agreement, the entities have agreed to explore opportunities for collaboration, such as cross- entity training and other forms of knowledge sharing, to support the development of clearing and settlement practices for the Chinese fixed-income market.
“The tremendous growth in Asia’s economies continues to challenge the established US and European capital markets,” says Euroclear Bank Chairman Frdric Hannequart. “China, on its own, is about to become the third largest economy in the world and is expected to catch up with Europe as a whole and the US by the middle of the century. Euroclear Bank’s long-standing presence and commitment to Asia makes us a natural partner for the CGSDTC, particularly in fixed-income securities processing. We are pleased to forge even stronger ties with a capital market with such promise.”