Deutsche Bank facilitates margin trading and securities borrowing transaction for offshore investor under the new rules

On December 29, Deutsche Bank China successfully facilitated a margin trading and securities borrowing transaction under the new measures for the administration of domestic securities and futures investments by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (“The new rules”).

On December 28, 2020, China Securities Depository and Clearing Corporation Limited officially opened the application and registration channel for margin securities accounts after China Securities Regulatory Commission's announcement of the new rules on November 1, 2020.

Deutsche Bank China's onshore custodian bank provided a full suite of custody services including account opening, asset custody, cash transfer and regulatory reporting, and helped in completing a smooth transaction on the first trading day of margin trading and securities borrowing under the new rules.

Tony Chao, Head of Securities Services Greater China and Head of Securities Services Sales in North Asia at Deutsche Bank, said: “The opening of margin trading and securities borrowing through the QFII/RQFII scheme expands the investment product scope and increases the diversification of investment strategies available to foreign investors. It also helps in improving fund efficiency, providing investors with greater flexibility to investment strategies and portfolio execution.”

Stanley Song, Head of Deutsche Bank Securities Services China, added: “Against the backdrop of China's continuous and steady market opening, foreign investors are increasingly looking for China market investments. As one of the leading global custodian banks, we will continue to leverage our global expertise and deep understanding of the local market to provide relevant and efficient services to our clients and help them to seize the rising opportunities in the China market.”