Deutsche Bank to receive China inter-bank bond settlement licence

China bicyclesDeutsche Bank China is to provide bond settlement services on the Chinese mainland to foreign institutional investors.

The People's Bank of China has granted Deutsche Bank China an inter-bank bond settlement agent licence, which allows the German bank’s China venture to provide end-to-end bond services to local corporates and financial institutions across the country. This also includes bond trading and settlement services.

With this licence, Deutsche Bank is able to offer onshore settlement services in the over-the-counter market, as well as on-exchange, to a wider range of clients.

It could also provide services to renminbi trade settlement banks, insurance companies, qualified foreign institutional investors and renminbi qualified foreign institutional investors.

“Receiving the inter-bank bond settlement agent licence is an important milestone for us, especially as we continue to deepen our reach in this large market,” says Beng Hong Lee, head of markets at Deutsche Bank China.

“Inter-bank trading activities represent more than 94% of the bond market in China, so this licence brings great potential to our fixed income trading franchise.”

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