HSBC Becomes First Foreign Bank to Assist Overseas Investors with Trading on Beijing Stock Exchange


HSBC recently became the first foreign invested bank to provide assistance to qualified foreign investors (QFI) conducting trades on the recently launched Beijing Stock Exchange (BSE).

On 5 January HSBC announced that it had provided assistance to a QFI in the completion of its first share trade on the BSE, and in the process become the first foreign invested bank to undertake escrow services in this area.

Officially launched in November of last year, the BSE focuses on direct financing for innovative small-scale start companies in China.

At the time of launch Chinese regulators also launched an accompanying set of regulations concerning investment made by offshore investors in shares on the BSE.

“As a specialist platform for direct financing of high-quality, innovative small and medium-sized enterprises, the BSE’s establishment has accelerated the high-quality growth of multi-tier capital markets in China,” said Zhong Yongling (钟咏苓) from HSBC China’s securities services department to Financial News.

“It has also attracted the widespread attention and active participation of offshore investors, which will help offshore investors to achieve diversification of their investments, as well as expedite the allocation of more medium and long-term funds to renminbi assets.

“We forecast that there will be more offshore investors participating in the BSE, and that the active participation of offshore funds will help drive the continually growth and expansion of the BSE, as well as support the flourishing development of small and medium-sized enterprises.”