Harvest China Bonds Fund, a Luxembourg UCITS client of HSBC Securities Services (HSS), has become one of the first funds to trade in the China Interbank Bond Market (CIBM) using the newly launched Bond Connect scheme.
Bond Connect allows overseas investors to trade in CIBM through connection between the mainland China and Hong Kong financial infrastructure institutions.
Harvest China Bonds Fund, launched by Harvest Global Investments, will offer both institutional and retail investors in Europe the opportunity to access the $10 trillion CIBM, the third largest bond market in the world.
The fund will also give European investors the ability to diversify their investments and gain exposure to the China bond markets.
The partnership with Harvest has been growing for over eight years and spans Asia and Europe. HSBC is currently trustee, global custodian, fund administrator and Renminbi Qualified Foreign Institutional Investor custodian to Harvest’s funds in Hong Kong.
Nicholas Maton, head of Securities Services at HSBC in Luxembourg, commented: “We have seen the CIBM rapidly develop and China is determined to open up the capital markets for foreign investors and asset managers.”
He added: “We are very pleased to support our clients in trading via the Bond Connect channel and being the pioneer to drive the development of Luxembourg fund industry.”
Ashley Dale, chief business development officer and chief marketing officer for Harvest Global Investments, said: “We believe our expertise in managing assets in China, with an established and sophisticated team of over 200 investment professionals on-the-ground locally, complimented by our investment pedigree in Hong Kong, allows us to provide our clients with the most insightful, well researched and actively managed products available.”
He added: “Our UCITS product line-up is developing well, with funds that really reflect the huge opportunities in China and throughout Asia.”
