Saxo Bank, a multi-asset broker, announced this Monday that it has increased access to Chinese securities, further strengthening its position as a gateway to China for foreign investors.
Now, qualified institutional clients of the Danish broker can trade mainland China bonds, from one of the largest bond markets in the world with a size of $12 trillion. This new offer is available through the Hong Kong-based Bond Connect mechanism, Bond Connect gateway, a mutual bond access programme launched in 2017.
To remain compliant with regulations of the People’s Bank of China, qualified institutional investors have access to 127 China bonds with CNH as a settlement currency through Saxo Bank.
The multi-asset trading provider offers full digital access to these bonds via a ‘click to trade” functionality, giving foreign investors easy and automated access to a market that has historically been difficult for foreign investors.
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Commenting on the news, Fan Xu, CEO of Greater China, Saxo Bank, said: “Chinese securities are an increasingly important part of an international investors’ portfolio, as demonstrated by record inflows into Chinese stocks in January this year, as well as strong international inflows into Chinese bonds in 2018.
“At the same time, Chinese government bonds emerged among the best-performing government bonds of 2018. We are therefore proud to be the first to deliver full digital access to Chinese bonds to help our clients build strong diversified investment portfolios.”
Saxo Bank Continues China Focus
The announcement today follows on from a number of steps Saxo Bank has taken to improve its Chinese investment offering. As Finance Magnates reported, the broker added China A-Shares to its service offering in June of last year.
Further developments such as the one today are likely to continue as the Denmark-based firm has stated that it will continue to broaden its exposure and capitalize on opportunities in China as its financial markets continue to open.