HSBC and securities settlement systems provider Clearstream have linked up to enable customers of the international central securities depository (ICSD) to access to China’s Interbank Bond Market (CIBM).

In the cooperation, HSBC will be the onshore bond-settlement agent for Clearstream’s overseas institutional investor customers, providing trading execution, settlement and custody services in the Chinese market. 

Philip Brown, co-chief executive at Clearstream Banking, said: “This development coincides with an important milestone – the inclusion of the renmimbi into the IMF’s SDR currency basket – which is expected to boost investors’ demand for what is already the third-largest bond market in the world.”

Ian Banks, head of HSBC Securities Services for Asia-Pacific, said a deep and liquid domestic bond market was a major step on the road to China’s achieving its ambition of making the renmimbi a truly global currency.

“Partnering with Clearstream places us in an excellent position to help foreign institutional investors tap into opportunities in the CIBM, which is the third-largest fixed income market in the world, with a size of approximately 54trn renmimbi,” he said.

In other news, RWC Partners, through its emerging and frontier markets team, has entered into an advisory relationship with RiceHadleyGates (RHG).

RHG is an emerging-market strategic consulting firm led by former US secretary of state Condoleezza Rice, former US secretary of defence Robert Gates, former national security adviser Stephen Hadley and former state department official Anja Manuel.

RHG will provide strategic input on political and structural market developments to support RWC’s top-down macroeconomic views.