Operational Information

CFCL General information – Hong Kong

Hong Kong CFCL

Reference

Service level
CFCL

CFCL eligible fund types

Register market

Investment funds that are established in the following forms are eligible in CFCL:

  • Mutual funds (i.e. collective investment schemes which are typically open-ended retail funds) established in Hong Kong are typically in the form of a unit trust, but can also be in the form of an open-ended fund company. Mutual funds which are to be offered to the public must be authorized by the Securities and Futures Commission;
  • Private equity funds are typically established in the form of a limited partnership structure;
  • Hedge funds may be established as a unit trust or an open-ended fund company or in the form of a limited partnership or limited partnership fund structure.

CSD link

CSD-eligible closed-ended funds and ETFs are eligible in Clearstream Fund Centre.

Please refer to the General information ‒ Hong Kong ‒ China Connect securities for more information about funds available via the CSD link.

Custody chain and depository

Type of link

Indirect via Citibank N.A. (Hong Kong Branch) to:

  • Hong Kong Securities Clearing Company Ltd, operating CCASS
  • Hong Kong Monetary Authority, operating the CMU system

CSD

Custodian

CBL (as CFCL’s depository)

Name

Hong Kong Securities Clearing Company Ltd (HKSCC) Hong Kong Monetary Authority (HKMA)

Citibank, N.A. Hong Kong branch

Clearstream Banking S.A.

FATCA GIIN

HKSCC: 7ENI1T.00000.LE.3 44

HKMA: Not available

NXUTG8.00175.ME.344

N1V1GJ.00000.LE.442

LEI

HKSCC: 213800NM8ZN1F1 6ARD34

HKMA: Not available

E57ODZWZ7FF32TWEFA76

E57ODZWZ7FF32TWEFA76

Country of incorporation

Hong Kong

USA

Luxembourg

Account type

Omnibus

Omnibus

Segregated

Legal Account name/holder

Account holder: Citibank
NA Hong-Kong
HKSCC: Securities are registered in the name of HKSCC Nominees Limited, the common nominee
HKMA: Securities are in name of the CMU member (that is, Citibank N.A. Hong Kong branch) Citibank NA Hong Kong branch as the participant in HKSCC and HKMA holds a segregated account for CBL at either CSD.

Clearstream Fund Centre S.A.

Clearstream Fund Centre S.A.

Depository

Depository

Local custodian/Agent

CBL

CITIBANK N.A. (Hong Kong branch)
50/F, Champion Tower
3 Garden Road
Central, Hong Kong

Operational arrangements

This section describes the operational arrangements of the Hong Kong market, which is both a Register market with a CSD link.

Domestic Market

Yes/No

Register Market

Remarks

Settlement free of payment

Yes

Yes

Settlement against payment

Yes

Yes

Eligible settlement currencies:
CCASS: Hong Kong Dollar (HKD), Chinese Renminbi (RMB);
CMU: Hong Kong Dollar (HKD), Chinese Renminbi (RMB)

Settlement against payment in central bank money

No

N/A

CBL acting as a sub-custodian for CFCL holds a cash account at the custodian. Against payment settlement in HKD and RMB is conducted in the HKMA payment system on the cash account of Citibank Hong Kong’s acting as the clearing party.

Settlement penalty fees

Yes

N/A

Partial settlement

No

N/A

Not market practice but is permissible with special arrangements.

Recycling

Yes

N/A

Settlement with Euroclear

Yes

N/A

Allegements

Yes

N/A

Registered securities

Yes

N/A

For dematerialised securities, registration takes place automatically upon settlement.

Proxy voting

Yes

N/A

Liquidity Hub Connect

No

N/A

Sale and purchase of rights

Yes

N/A

Repo services

No

N/A

Market restrictions

No

N/A

FTT

Yes

N/A

Stamp duty incurred

Daily reconciliation

Yes

N/A

Moment of entry of instructions

The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability of instructions

Settled transactions are irrevocable.

Finality of instructions

Settlement in the Hong Kong market is final upon settlement in the books of HKSCC and HKMA.

Legal arrangements

The below section is valid on the date of the legal opinions that were issued and might be subject to change.

The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

As CBL is our sub-custodian, please refer to the Market Link Guide – Hong Kong for the complete information about Legal arrangements.

Cash correspondent details

Currency:

Offshore Chinese Renminbi (CNY)

Offshore Chinese Renminbi (CNY)

CCB name:

Bank of China (Hong Kong)

Bank of China (Frankfurt)

CBL account:

01287560120489

9700239431

Swift address:

BKCHHKHH

BKCHDEFFCLR

CCB name:

ICBC Singapore Branch

Standard Chartered Bank Hong Kong

CBL account:

6103020000000009962

44709447259

Swift address:

ICBKSGSGCLR

SCBLHKHHXXX

Currency:

Hong Kong Dollar HKD

CCB name:

Standard Chartered Bank Hong Kong

CBL account:

44709447240

Swift address:

SCBLHKHHXXX