French lender BNP Paribas has unveiled a stock connect solution to support UCITS funds that aim to invest in Chinese A-shares via the Shanghai-Hong Kong Stock Connect program.
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The launch follows the announcement on 1 December that the first UCITS fund had been approved for trading on Stock Connect.
The integrated broker-custodian solution will cover execution, clearing and custody services enabling seamless investments for clients.
In addition, the solution will ease the pre-trade checks and risk faced by northbound trading investors while transferring stock from custodian to broker.
The solution will allow investors to keep their assets in custody with BNP Paribas Securities Services which means that there is no need to further deliver securities before selling via BNP Paribas Securities (Asia).
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By GlobalDataBNP Paribas Securities Asia deputy CEO Hugo Leung said: "BNP Paribas offers multiple solutions for clients who are interested in Northbound trading. In addition to the integrated broker-custodian solution, clients can also use our synthetic security products (Delta One) including P-notes and equity swaps to tap into Stock Connect."
BNP Paribas Securities Services head of Asia Pacific region Lawrence Au said: "The Association of the Luxembourg Fund Industry (ALFI) stated that UCITS funds should give due consideration to a number of factors before participating in the Stock Connect. Our integrated solution addresses precisely these concerns."
