The move by Daiwa AM could revitalise investment activity conducted on the China-Japan ETF Connectivity scheme.
Emerging markets are attracting increased securities lending activity from international investors as beneficial owners seek new revenue streams, and positive developments in China and Saudi Arabia are fuelling this further, according to Adnan Hussain, global head of securities lending at HSBC.
The mandate win for one of China's largest investment firms follows BNP Paribas Securities Services’ recent build-out of its ETF capabilities.
Launched in December, Yulan bonds provides Chinese issuers to gain direct exposure to a wider foreign investor base and access a deeper liquidity pool.
The hire will aid TMF Group's goal of developing and maintaining its funds network of and business development opportunities in China.
Short selling and margin financing volumes by offshore investors in China are set to take off following the new relaxation measures last month.
Citi, HSBC and Standard Chartered all successful facilitate margin financing and securities borrowing transactions in China for global investors under the Qualified Foreign Institutional Investors (QFII) scheme.
The fund invested is the first private fixed income fund launched by Barings Investment Management (Shanghai).
The two market infrastructures have teamed up to launch Yulan bonds, connecting global investors to Chinese issuers without navigating China’s settlement system.