BNP Paribas has received acknowledgment by the People’s Bank of China (“PBoC”) for its first China Interbank Bond Market (CIBM) filing as a bond settlement agent and local custodian. The CIBM is the world’s third largest bond market after the US and Japan.
The filing relates to three funds run by Aberdeen Asset Management Asia Limited (“Aberdeen Asia”) in Singapore and two funds run by Aberdeen Fund Managers Limited in the UK.
CG Lai, Head of Global Markets, Greater China, BNP Paribas, said: “We are seeing growing appetite from foreign investors to participate in China’s Interbank Bond Market, following the Renminbi’s inclusion into the IMF’s Special Drawing Rights basket and its potential inclusion in global indices. Investors are speeding up their preparation to enter this market. BNP Paribas is well equipped to accompany investors in their efforts to tap into China’s growth opportunities.”
Annie Tong, Head of Investment Operations, Asia Pacific, Aberdeen Asia said: “This facility means Aberdeen will now be able to invest directly in the onshore interbank bond market via these funds.” Adam McCabe, Head of Asian Fixed Income, added: “The development of the CIBM is another step in China’s capital market liberalisation, and an important one given the size of this market and growing demand for RMB transactions from investors in the region and internationally.” József Szabó, London-based Head of Global Macro, added: “Aberdeen views China as a very important market within our global asset allocation, hence this development will help optimise investment strategy for our funds.”
Philippe Benoît, Head of Asia Pacific, BNP Paribas Securities Services said: “We are pleased to extend our global partnership with Aberdeen Asset Management and facilitate their access to the CIBM. The opening up of this market, which accounts for approximately 90% of the total capitalisation of China’s domestic bond market, has unlocked many new opportunities for investors.
“As a global asset servicer, supporting our clients’ cross-border investments is key to our offering and we are excited by the many opportunities that come with the Renminbi internationalisation.”
BNP Paribas (China) Ltd. is one of four foreign banks holding a Bond Settlement Agent licence to trade, settle and provide custody for CIBM instruments on behalf of is clients.
For more information on the CIBM, please click here.