Creation Link Guide - China - China Interbank Bond Market

17.10.2016

Key features

Key services

Yes/No

Remarks

Settlement free of payment

No

Unless for portfolio transfer (change of settlement agent).

Settlement against payment

Yes

RMB only (Onshore CNY).

Bridge settlement

No

 

Shaping facility

No

 

Partial settlement

No

 

Settlement penalty fees

No

Broker monitors available holding balances on pre-trade basis to avoid any short-selling.

Pre-matching

No

 

Back-to-back processing

No

 

Allegements

No

 

Automatic compensation

No

 

Registered securities

Yes

Registration takes place automatically upon settlement.

Multi Market Securities

No

Lending and borrowing

No

 

Proxy voting

No

 

Investment Funds

No

 

Liquidity Hub Connect

No

 

Sale and purchase of rights

No

 

Repo services

No

 

Market restrictions

No

Eligible investors are required to file for registration with PBOC prior to investment in the China Interbank Bond Market.

Segregated accounts per investor are opened at the CSD level and in HSBC’s books.

FTT

No

 

FATCA GIIN

No

 

Miscellaneous

Yes

The opening of individual investor accounts by CBL is not permitted.

Eligible customers have to open a separate CBL account for investment into the China Interbank Bond Market.

Type of link

CSD or settlement method

Indirect link via HSBC China

China Central Depository and Clearing Corporation Ltd  (CCDC)

Shanghai Clearing House (SCH)