Citi China has received approval from the Shanghai Futures Exchange (SHFE) and International Energy Exchange (INE) to act as a Futures Margin Depository Bank for its Qualified Foreign Investor (QFI) clients to trade commodity futures on the SHFE and INE.
Citi aims to offer a complete end-to-end solution, from trading and research to custody, clearing and settlement, to international investors investing in China.. This may be direct (through the QFII, RQFII, and CIBM direct schemes) or via Hong Kong (through Stock Connect and Bond Connect).
Aditya Sharma, head of custody at Citi Asia Pacific, comments: “The strength of our custody business lies in our ability to deliver local solutions and proactive engagement to expand offerings as new products are enabled. Our understanding of the market, client-centric mindset and engagement with market infrastructures has helped us gain the approvals from SHFE and INE.”
Christine Lam, CEO of Citi China, says: “The relaxed QFI regulation provides new ways for global investors to participate in China’s capital markets. With this newly added capacity to serve as a futures margin depository bank, Citi China is well positioned to help [global clients] navigate and capitalise on these opportunities in the ongoing opening-up of the Chinese capital markets.”
