Standard Chartered participates in trading of treasury bond futures in China

Standard Chartered Bank (China) Limited announced on Wednesday that, with the permission by relevant regulatory authorities, the bank has completed its first treasury bond futures transaction through accounts opened at a futures company. It thus became the first foreign bank to participate in the trading of treasury bond futures in China.

Since the Northbound Bond Connect was launched, the internationalization of China's bond market has increased remarkably, and the proportion of Chinese bonds held by foreign investors has also increased significantly.

The opening-up of China's treasury bond futures market will further improve the benchmark interest rate curve of treasury bonds, enable domestic and foreign investors to better participate in the domestic bond market, as well as promote the continuous opening of China's bond market and the internationalization of the renminbi, said Standard Chartered China.

"As a key growth driver of the global economy, China will provide continuous and vast investment opportunities for global investors," said Benjamin Hung, chief executive officer for Asia at Standard Chartered.

"With increasingly smoother channels for foreign investment into China and more comprehensive risk management tools available for global investors, we believe that the depth and breadth of global investors' participation in China's capital market will continue to increase. Global investors will benefit from the increasingly open Chinese market through diversified allocation of Chinese assets," Hung said.

Jerry Zhang, executive vice-chairman and chief executive officer of Standard Chartered China, said: "China's unwavering efforts toward expanding its opening-up, especially the continuous opening-up of the financial markets at a high standard, provides tremendous opportunities for Standard Chartered in both the domestic and international markets."

Standard Chartered China will continue to support global investors who are keen to participate in China's capital market, and further enhance its price discovery function as well as its ability to serve the real economy, Zhang said.

In February 2022, Standard Chartered Group announced that it will invest $300 million in China-related businesses over the next three years to help Standard Chartered customers seize the development opportunities brought by China's continued opening-up and double the relevant profit contribution by the end of 2024.