Citi China today announced that it had successfully established the clearing and settlement route with China Securities Depository and Clearing Corp. Ltd. (CSDCC) Beijing Branch to support clearing and settlement activities for the new Beijing Stock Exchange and the National Equities Exchange and Quotation Co., Ltd (NEEQ). This makes Citi one of the first international banks to do so for the new stock exchange and become fully equipped to support QFII trading.
“Citi has always supported and encouraged the development of the Chinese capital markets. We were amongst the first international banks to acquire CSDCC clearing membership and provide custody & clearing services for QFIIs in 2003. Our new ability to support QFII clients to trade in the new Beijing Stock Exchange continues that long and proud tradition,” said Aashish Mishra, APAC Head of Custody for Citi.
“Citi first came to China 1902 and our story has been one of continuous innovation and evolution in lockstep with China’s capital market developments, an example of which is this past July when Citi received final approval to launch securities investment fund custody services onshore. Our ability now to support settlement and clearing activity for the launch of the Beijing Stock Exchange reiterates our support and confidence in the China market,” said Christine Lam, Chief Executive Officer of Citi China.
In September last year, Chinese President Xi Jinping announced plans for the creation of a new bourse in Beijing, making it the third stock exchange on the Chinese mainland after the Shanghai Stock Exchange and the Shenzhen Stock Exchange. The new Beijing Stock Exchange is fully owned by the Beijing-based NEEQ, an existing platform dealing in over-the-counter trading of smaller companies typically before they list on a stock exchange. It is expected that many of the top-tier companies traded on NEEQ will migrate to the Beijing Stock Exchange.
The Beijing Stock Exchange will focus on innovation-oriented small and medium-sized enterprises (SMEs) which may have struggled to access financing compared with their larger counterparts. The new exchange will provide these SMEs with an increased pool of investor capital to support their growth ambitions.
With approximately $30 trillion 1 of assets under custody and administration and the industry-leading proprietary network spanning over 60 markets, Citi Securities Services provides clients with extensive on- the ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of custody and fund services that can be tailored to meet clients’ needs.
1 As of Q3 2021. AUC/A figure separately represents gross assets for which Citi provides Global Custody and sub-custodian services via its Direct Custody and Clearing business and includes Issuer Services. Citi previously reported AUC/A numbers on a net basis, therefore discounting assets serviced by both businesses.