HSBC acted as the arranger bank, custodian and settlement bank for the digital bond issued on the Marketnode platform.
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.
Global custody banks have expanded their services in the region in order to capitalise on the opening up of Saudi Arabia’s securities markets to foreign investors.
Launch follows relaxed rules in the country aimed at boosting local fund managers’ operations.
HSBC established the private assets business in 2019 to capitalise on the huge growth in demand from investors in markets.
The appointment will bolster the rollout of BNY Mellon's OMNI digital and data solutions for the EMEA region.
The tool from HSBC will allow asset managers to assess the effectiveness of hedging strategies and will be integrated with the bank’s single dealer platform later this year.
HSBC has signed securities services partnerships with the National Grid UK Pension Scheme and the Cadent Gas Pension Scheme.