Saxo Bank Provides Access to Trade in Mainland China Bonds to Qualified Institutional Clients

saxo bankCopenhagen-based multi-asset broker, Saxo Bank in its announcement on Monday said that it had increased access to Chinese securities, further opening up the Chinese market for foreign investors. 

Through Saxo Bank, qualified institutional clients can have access to and trade Mainland China bonds, which is one of the largest bond markets in the world with a total market size of $12 trillion. This new service is available through the Hong-Kong based Bond Connect Mechanism, Bond Connect Gateway. 

In order to remain fully compliant to Chinese regulations by People’s Bank of China, the qualified investors will have access to 127 China bonds with CNH as a settlement currency through Saxo Bank. Saxo bank provides full digital access to these bonds via a “click to trade” functionality that allows foreign investors easy and automated access to a market that has been historically difficult for foreign investors.

Commenting on the news, Fan Xu, CEO of Greater China, Saxo Bank, said:

“Chinese securities are an increasingly important part of an international investors’ portfolio, as demonstrated by record inflows into Chinese stocks in January this year, as well as strong international inflows into Chinese bonds in 2018.

“At the same time, Chinese government bonds emerged among the best-performing government bonds of 2018. We are therefore proud to be the first to deliver full digital access to Chinese bonds to help our clients build strong diversified investment portfolios.”

The announcement is fully aligned to the company latest operational objective to increase its focus towards Chinese markets and strengthen its presence. The bank has taken a number of steps to improve its offering and will continue to broaden its offering related to the Chinese securities. In June last year, the broker had added China A-Shares to its service offering. The broker offers access to over 5,000 bonds, including more than 3.400 developed-market and 1,600 emerging-market bonds.