Money

Two HK-based banks allowed to tap mainland interbank bond market

(Xinhua)
Updated: 2010-10-16 16:35

HONG KONG - The Asia-focused Standard Chartered Bank, listed in Hong Kong, said Friday it has received regulatory approval for entry into the Chinese mainland's interbank bond market, becoming one of the first two banks to gain access into mainland's renminbi bond market.

The other was HSBC Hong Kong, local media reported, citing informed sources.

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According to a Standard Chartered statement, the People's Bank of China, the central bank, gave Standard Chartered Hong Kong the written approval in the day, allowing the bank to invest in its domestic interbank bond market.

Receiving the approval in Beijing, Standard Chartered's Regional Head of Northeast Asia Sundeep Bhandari said investment opportunities were ample in the mainland's interbank bond market.

"This latest deal will provide renminbi holdings in Hong Kong a new channel of re-entering into China's mainland, which should further encourage cross-border renminbi trade settlement," he said.

Standard Chartered was taking a proactive role in increasing utilization of the renminbi as a regional currency for investment, trade and reserves. With the new capability, Standard Chartered's position as a key player in the development of renminbi business would be further solidified, Bhandari added.