By Clare Jim and Kelvin Soh HONG KONG (Reuters) - HSBC 0005.HK HSBA.L hopes to gain a bigger quota on China's interbank bond market to match growing demand for yuan transactions after completing its first few transactions there, an executive said. The bank's China unit also began trading in local credit default swaps (CDS) after this new derivative market emerged this month, David Liao, HSBC (China)'s head of China global markets said in an interview. "As trade volumes grow, we hope to get a corresponding increase in our quota so that deposits coming from yuan trade settlements can access a wider spectrum of investment channels," Liao said. "If there is an approval for a bigger quota (given to banks), that will assist the deployment of liquidity in Hong Kong and the overall offshore market." HSBC's Hong Kong unit is one of three foreign banks allowed to transact on the domestic interbond market, together with arch-rival Standard Chartered STAN.L 2888.HK and Industrial and Commercial Bank's 1398.HK 601398.SS...
No comments:
Post a Comment