MUFG Bank Secures China Interbank Bond Market Licence

Source: Regulation Asia Editors, Regulation Asia 2020-06-17

MUFG Bank’s wholly-owned China subsidiary has become the first Japanese bank – and the eight foreign bank overall – to win a Bond Settlement Agent licence.

The PBOC (People’s Bank of China) has awarded MUFG Bank’s wholly-owned China subsidiary a Bond Settlement Agent licence, making it the first Japanese bank – and the eight foreign bank overall – to win such a licence.

The new licence will allow MUFG to act as a bond settlement agent, and to provide custody services, for overseas investors looking to access renminbi-denominated bonds in China’s interbank bond market.

With an MUFG account, Japanese investors will be able to transact in Chinese government bonds and bank debentures in Japanese, Nikkei notes. Previously they could only access China’s interbank bond market through overseas banks – using a foreign language.

In July 2017, MUFG became the first Japanese bank to obtain a licence as a Bond Connect market maker. To date, Bond Connect has been the primary route for Japanese investors to carry out bond trades in China.

In October 2019, MUFG was also awarded a bond underwriting licence, allowing it to support issuance activities of non-financial institutions in the China interbank bond market.

“With this latest license, MUFG Bank and MUFG Bank (China) will further contribute to the development of the China bond market and strive to provide the best- quality financial services to our valued investors,” the bank said in a statement.

MUFG Bank

MUFG Bank Secures China Interbank Bond Market Licence

Subscribe to Our Newsletter!

Subscribe to Our Newsletter!