Dalian Commodity Exchange Adopts HSBC As 1st Foreign Depository Bank

Dalian Commodity Exchange (DCE) issues a notice on its official website on January 29, 2019, that HSBC Bank (China) Co., Ltd. becomes its designated futures margin depository bank upon examination. It is permitted to engage in the margin depository business for overseas clients. This is the first time that DCE ushers in a foreign bank as its futures margin depository bank after its internationalization. HSBC is the 12th bank approved by DCE to engage in the margin depository business for overseas clients.

HSBC China started its operation in 2007 as one of the first batch of locally incorporated foreign banks. It is wholly owned by The Hong Kong and Shanghai Banking Co., Ltd. The HSBC Group is one of the world’s largest financial services organizations with high quality overseas clients, and its business network covers 66 countries and regions around the world. In addition, the HSBC has a deep understanding on the Chinese market, and it is a foreign bank with the largest service network covering the widest geographical reach in China’s mainland.

A Chief of the Global Capital Management Department of HSBC (China) says that the HSBC has always supported the opening-up of the Chinese financial market. It will make the most of its advantage in cross-border connection to encourage more overseas investors to invest in the Chinese commodity futures market.

A DCE official says that, DCE has been active in introducing foreign banks as the futures margin depository banks since the iron ore internationalization in 2018, with an aim of optimizing the overall layout of depository banks. The HSBC has been experienced in services for overseas client. Adopting it as the futures margin depository bank will provide overseas traders with more convenient and high-quality capital services.