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November 24, 2020

BNP Paribas taps China’s equity capital markets with CLSA tie-up

By Verdict Staff

BNP Paribas Securities Services has named CLSA as the partner broker for its multi approved partner broker (MAP) model for the China-Hong Kong Stock Connect scheme, which enables Hong Kong and mainland Chinese investors to directly buy shares in each other’s markets.

With the MAP model, investors can select from a range of brokers and get guaranteed real delivery versus payment (DvP) settlement via internalised settlement in BNP Paribas’ local custody book in Hong Kong.

The collaboration will help develop a “strong bridge between China and global buy-side institutions” through the MAP Model, noted BNP Paribas.

BNP Paribas Securities Services Hong Kong head Julien Kasparian said: “To support our clients and their cross-border ambitions, we are continually growing the list of approved broker partners to enable institutional investors to invest into China through Stock Connect in the most efficient ways.”

Hong Kong-based CLSA offers asset management, corporate finance and capital markets, securities and wealth management products and services.

The company, affiliated with China-based securities firm CITIC Securities, provides equity research on Asian companies, markets and themes.

It serves corporations, financial institutions, governments and individuals.

CLSA Institutional Equities CEO Edward Park said: “China’s onshore capital markets continue to expand and attract foreign investment, as global indexes increase China’s weighting in their equity and fixed income benchmarks, and direct investment becomes more accessible.

“This partnership will enable BNP Paribas’ and CLSA’s clients to invest in Chinese equities based on our actionable and original research, with the security brought about by a market-leading custodian.”

China’s fund market is continuing to lure firms from around the world amid the liberalisation of its financial services sector.

Most recently, Pictet Asset Management, the asset management arm of Geneva-based Pictet Group, set up a unit in Shanghai in a bid to tap the fund market in the country.

Previously, a slew of foreign asset managers including Edinburgh-based Baillie Gifford, US-based investment manager Russell Investment, found their way to China.

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