Deutsche Bank Becomes First German Lender to Win Fund Custody License in China
What’s new: Deutsche Bank (China) Co. Ltd. has been granted a fund custody license from China’s securities watchdog after about eight months of waiting for approval, according to a statement (link in Chinese) published by the regulator earlier this month.
The license allows the China subsidiary of German lender Deutsche Bank AG to provide custody services for fund products in China, namely holding fund assets for safekeeping.
What’s the background: Rose Zhu, chair of Beijing-based Deutsche Bank (China), told Caixin in early December that the bank would “take a more aggressive position” in China’s market amid the country’s financial opening-up.
In August, Citibank (China) Co. Ltd. based in Shanghai became the first American bank to obtain the fund custody license. Before that, Standard Chartered Bank (China) Ltd. was the only foreign company to do so.
HSBC Bank (China) Co. Ltd. has also applied for the license, which is currently pending approval (link in Chinese).
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