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7189/ 09.17 RMB to Connecting Clearstream

a global market China – – – – – initiatives Domestic RMB Trends towards RMB. the of importance the of international recognition and markets capital Chinese of reform internal both of convergence rare a witnessing currently are we market, the of size the with Coupled 2016. end by outstanding 9.2 trillion USD around with world, the in biggest third –the gargantuan also is market income China’s fixed 2016. end by 7.3 USD trillion over of capitalisation amarket with world, the in largest second the is market China’s equity

in China in geographies specific in Zones Trade Free domestic of Expansion Market liberalisation Interbank Chinese 2016 in Connect Shenzhen- Kong and Connect, Stock - liberalisation and increases quota QFII/RQFII liberalisation

RMB as a global currency. aglobal as RMB the and markets capital Chinese the of importance the of recognition growing there is environment, international tothe Turning 2020s. the by expected convertibility full capital with now, time some for internationally RMB the of use on controls of easing and simplification a gradual witnessed have We months. twelve last the over reforms liberalisation in progress of aflurry been has There – – – recognition International JPMorgan and Global FTSE MSCI, as such indices, global in inclusion for consideration in are bonds Both China A-Shares and A-Shares China Both as of October 2016 October of as basket currency reserve (SDR) Rights Drawing Special IMF in Inclusion SWIFT via RMB of usage in increase Rapid

Empowering RMB Streamlining your Moving Onshore Specialised value-added globally Stock Connect access services

Clearstream is keen to first dedicated trading venue Clearstream launched its confine other schemes make sure that you can for China- and RMB-related China Bond Link on harnessing domestic fully leverage your offshore investment products in 17 October 2016 to coincide Chinese assets such as RMB business around the international markets. with the inclusion of the QFII or RQFII. world. RMB in the IMF’s Special Clearstream’s services Drawing Rights (SDR) Clearstream will work with RMB liquidity dovetail with CEINEX, reserve currency basket. customers to facilitate the allowing customers to setup of the operational and around the clock benefit from a full suite of legal structures necessary Offshore RMB is a full issuance, settlement, A unique ICSD to access, settle and hold settlement currency at safekeeping and asset access path to the onshore assets, and will Clearstream, which allows services for the venue support daily processing customers to benefit from through their existing domestic Chinese with our standard suite of issuance and settlement channels, with no Stock Connect is a Clearstream is interbank bond ICSD value-added services, Collateral Mutual recognition services in RMB. connectivity or account securities trading and market. including corporate actions management for of funds changes. clearing link programme by currently the processing and reporting. Clearstream’s Cash Hong Kong Exchanges and only ICSD to offer RMB assets A linkage between the Correspondent Bank Access China’s Free Clearing Limited (HKEx), settlement and Clearstream’s China Bond In Luxembourg, the CSSF HKMA’s Central Money (CCB) network for offshore Shanghai Link provides eligible has granted UCITS Fund Through Clearstream’s markets Unit (CMU) and RMB now covers five Trade Zone market (SSE) and China Securities custody services of international investors with Managers permission to Global Liquidity Hub, Vestima facilitates the different locations in Asia The opening of the Shanghai Depository and Clearing China A-shares via individual quota-free access treat the Chinese interbank customers can also benefit processing of cross- and Europe. This means Free Trade Zone creates Corporation Limited to the onshore Chinese bond market as a regulated from triparty repo services border customers can benefit from another major “offshore” (ChinaClear) allowing the Stock Connect interbank bond market, market. Combined with our for the offshore Renminbi transactions under the access to liquidity to support RMB market, uniquely mutual market access scheme. leveraging simplifications Stock Connect offering, market in Hong Kong. Mutual Recognition for their issuance, settlement located within China’s between recently brought in by which provides easy access Funds (MRF) programme. and collateral management borders. As such, it marks and Hong Kong. In trading volume via the Stock Chinese regulators. to Chinese equities, clients Based on bilateral repo Clearstream customers activities in both Asian and a further step in the December 2016 the Connect allows the Chinese can therefore now use our agreements between are now able to directly European time zones. liberalisation of the Chinese scheme was extended to government to open up the Our offer is presented China Bond Link to invest in the Hong Kong-based send orders for mainland financial sector. provide a linkage between market in a step-by-step without the limitations RMB fixed income securities cash provider in offshore Chinese funds under the Trade and settle HKEx and the Shenzhen manner. and quota restrictions that dealt on the CIBM. Renminbi and the MRF scheme. In 2016, Clearstream Stock Exchange (SZSE) – international cash taker, RMB-related signed a Memorandum of Clearstream’s link to this Clearstream’s enhanced Clearstream acts as the The new linkage between instruments Understanding with the extended setup went live service offers customers central collateral manager Vestima and CMU enables internationally Shanghai Clearing House immediately. the possibility to segregate for the HKMA in managing foreign investors also to (SCH) to explore cooperation their positions via the the collateral. invest in MRF-eligible Founded in 2015 as a joint on interest rate derivatives, Stock Connect is one of the Special Segregated Account China-domiciled funds. venture between our parent foreign exchange CCP main avenues for accessing (SPSA) model. This allows The Global Liquidity Hub The link will enable China- company, Deutsche Börse services and bond custody. China A-Shares, allowing customers to conduct also provides customers based asset managers to Group, the Shanghai Stock Chinese firms to raise DVP/RVP settlement via with securities lending reach global investors while Exchange (SSE) and money from a broader pool this linkage without a and borrowing services for the relevant transaction China Financial Futures of international investors. requirement to pre-deliver offshore RMB bonds. orders will be processed in Exchange, CEINEX is the At the same time, the quota securities. a streamlined, automated restricting the maximum and efficient manner.