HSBC has launched customdian services for Mainland commercial banks that are eligible to provide overseas welath management servcies undre the Qualified Institutional Investor (QDII) scheme, Forbes reported.
HSBC allows qualified mainland lenders, Bank of China, Bank of Communications, Industrial and Commercial Bank of China and China Construction Bank, to open domestic and overseas custodian accounts and will provide foreign exchange, securities and cash settlement services.
The bank said it is the first foreign bank to receive approval from the China Banking Regulatory Commission (CBRC) to offer custodian services for this new banking service area, Forbes wrote.
HSBC will also monitor the progress of investment activities by commercial banks and ensure compliance with regulations.
Recently, China has gradually allowed its domestic banks and insurers to broaden their range of investments to potentially increase their returns, which is believed to be constructive to loosen capital outflows and relieve pressure on yuan.
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