BNP Paribas has just obtained a license to provide custody services to foreign investors in China. A small victory for the bank which had been seeking to obtain this sesame for several years. “We already offer a whole range of services to asset managers, pension funds, sovereign wealth funds, as well as banks and brokers, who wish to invest in the Chinese markets. It was the missing piece of the puzzle, ”says Luc Renard, head of financial intermediaries for Asia Pacific at BNP Paribas Securities Services.
Until now, the bank’s clients who intervened directly in Chinese markets under the program known as “Qualified Foreign Investor” had to use a sub-custodian for their assets. “This introduced complexity and additional costs,” notes the banker.