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China to Give Foreign Banks’ Local Branches Access to Fund Custody Licenses
Published on: 2020-05-11
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hsbcA man walks past a logo of HSBC outside a branch at the financial Central district in Hong Kong, China

China will probably give foreign banks’ local branches access to fund custody licenses, draft revisions to relevant regulations showed Saturday.
 

Such branches have no independent legal personality and are currently barred from entering the sector, as foreign banks can only qualify for the license if they set up a local subsidiary. The license allows a company to provide custody services for fund products issued by fund firms or other asset managers in China, namely holding the products for safekeeping.

citiChina will also probably set the asset requirement 10 times higher than it is currently, with the draft revisions requiring applicants’ net assets be at least 20 billion yuan ($2.8 billion). Current regulations (link in Chinese) require a candidate’s net assets be at least 2 billion yuan at the end of each of the last three fiscal years.
 

The 2 billion yuan floor, initially set in 2004, is out of date, the China Securities Regulatory Commission (CSRC) said (link in Chinese). In practice, banks acting as fund custodians always need to have net assets of at least 40 billion yuan at the end of each of the last three fiscal years to be qualified to engage in the settlement of fund products, a key part of the complete chain of the fund custody business, it said.

deuteseForeign banks’ local branches would be qualified to apply for the license if their headquarters’ net assets meet the 20 billion yuan requirement, the CSRC said.
 

外国银行在华分行将可申请基金托管资格

符合条件的外国银行在华分行,将可申请证券投资基金托管业务资格。同时,提出申请的外国银行在华分行可以在获得核准后,再开展人员、系统、场所等方面的筹备工作。证监会自前日起,就修订《证券投资基金托管业务管理办法》公开征求意见,“托管办法”中明确了这一安排。修订同步完善了净资产准入安排,拟将基金托管人的净资产准入门槛调整为达到200亿元。

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