Standard Chartered announced today it had secured approval from the People’s Bank of China (PBOC) to act as a custodian bank to Qualified Foreign Institutional Investors (QFIIs) in China.
“The granting of a QFII custodian license reflects the authorities’ commitment to further liberalise the local securities market for participation by foreign institutional investors,” says Paul Hedges, Group Head of Custody Sales at Standard Chartered. “Receiving approval to be a QFII custodian is a major milestone for the Bank and for our custody business in China. As one of the leading regional custodians in Asia, we are pleased to contribute our experience and provide world class services to our clients in the A-share market. With our on-shore market expertise, we believe Standard Chartered is the right partner for the QFIIs in China, and we are able to provide a wide range of transactional banking solutions to meet their needs.”
As the oldest foreign bank in China, Standard Chartered believes its proven commitment and understanding of the local market will give it an edge. “Through our good standing with the regulators and on-the-ground presence, we have actively contributed to the development of China’s capital market,” says a spokeswoman. Standard Chartered has been a cash-clearing bank for the Shenzhen B-share market since 1992. Its custody operation in China has been top-rated in Global Custodian’s annual review of agent banks since 1997.