The recent launch of the Shanghai-Hong Kong Stock Connect has placed BNP Paribas in a leading position as a one-stop shop for Northbound trading, helping Hong Kong institutional investors invest in Mainland China.
BNP Paribas’ integrated broker-custodian solution enables Hong Kong investors to execute, clear and settle their trades in a seamless manner. In addition, the synthetic access, Delta one product swiftly becomes popular amongst investors.
Stock Connect is one of the most ambitious and complex projects undertaken in the financial markets. For the first time, Hong Kong and overseas investors are now able to buy Shanghai-listed A shares and similarly, mainland institutional and individual investors have also an unprecedented access to certain securities listed on the Hong Kong Stock Exchange. This innovative mutual market access scheme represents a historic development for China to internationalise RMB and integrate its capital markets with the rest of the world.
To help clients in Hong Kong to invest in Mainland China as part of the Stock Connect programme (known as “Northbound trading”), BNP Paribas’ custody business (BNP Paribas Securities Services) and brokerage business (Global Capital Market Division) have joined efforts in launching an integrated solution which allows clients to make their investments in a seamless manner.
Lawrence Au, Head of BNP Paribas Securities Services Asia Pacific, commented: “Stock Connect is a ground breaking initiative, which brings great investment opportunities to investors and asset managers. It also comes with a number of operational challenges as two exchanges with different trading rules and technology come together.
“To help asset managers make the most of Stock Connect, we have teamed up with our brokerage colleagues in Global Capital Market Division to offer our clients seamless access to Stock Connect via an integrated broker-custodian solution. This solution covers the entire trade lifecycle from pre-trade checks and execution to clearing and settlement. Our clients are able to focus on their investment decisions while we take care of all the executional and operational issues.”
Hugo Leung, Deputy CEO of BNP Paribas Securities (Asia) Ltd., said “We are very excited about this market development. BNP Paribas is supporting our clients to leverage on this opportunity. BNP Paribas is not only able to offer seamless solutions for cash investors, but can also offer synthetic access such as Delta one products. This is particularly interesting for those who are not ready to trade stocks and those that prefer to trade synthetic products.”