JPMorgan Chase Allowed to Conduct Interbank Bond Settlement
JPMorgan Chase & Co. has obtained a license from China to conduct interbank bond settlement services — getting into the market ahead of the official mid-July entry date due to the 100-day plan between China and the U.S. to further open up their markets to each other.
The U.S.-based bank has received a license from the People’s Bank of China to act as a bond settlement agent in the China Interbank Bond Market.
The announcement on Tuesday came a day after the Chinese government launched its Bond Connect program between the Chinese mainland and Hong Kong, enabling overseas investors more channels to access the Chinese bond market.
The bond settlement license followed JPMorgan’s acquisition of a corporate bond underwriting license earlier this year.
JPMorgan is one of two U.S. financial institutions that China promised to open its bond market to before July 16, according to a 100-day plan to boost trade between China and the U.S. following President Xi Jinping’s meeting with his U.S. counterpart, Donald Trump, in Florida in April.
Citibank became a licensed bond settlement agent in February.
According to the initial results of the 100-day plan, the U.S. has agreed to import cooked poultry from China, while China agreed to import U.S. beef and genetically modified agricultural products and consider the import of natural gas from the U.S.
In the financial sector, China also agreed to open its market to wholly U.S.-owned electronic payment services.
The bond settlement market is not opening just to U.S. banks. According to the website of China’s National Association of Financial Market Institutional Investors, a total of 48 financial institutions have received the license, including offshore banks HSBC, Standard Chartered, BNP Paribas and Deutsche Bank.
According to Pan Gongsheng, vice governor of the People’s Bank of China, offshore investors hold less than 1.5% of China’s bonds, which means there is great space for further opening-up.
China’s bond market is the world’s third-largest, with 67 trillion yuan ($9.85 trillion) of outstanding issuance by the end of June, Pan said on Monday at the bond-connect launch ceremony in Hong Kong.
Contact reporter Wu Gang (firstname.lastname@example.org)
Apr 01 16:00
Apr 01 15:51
Apr 01 13:31
Apr 01 10:40
Apr 01 03:10
Apr 01 03:06
Mar 31 18:19
Mar 31 17:11
Mar 31 13:09
Mar 31 12:54
Mar 31 09:32
Mar 30 17:37
Mar 30 15:43
Mar 30 12:54
Mar 30 10:06
- 1In Virus-Ravaged Wuhan, Hours-Long Queues to Collect the Ashes of the Dead
- 2Gallery: Bereaved Families of Wuhan Finally Allowed to Collect Their Loved Ones’ Remains
- 3Zhejiang Covid-19 Infection Highlights Threat from Asymptomatic Carriers
- 4Zhang Wenhong: Little Chance Coronavirus Pandemic Will End This Summer
- 5Coronavirus Live Updates (Thursday): G-20 Commits to $5 Trillion Injection; U.S. Jobless Claims Hit Record; Global Caseload Tops 500,000
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas