(China) – The Shanghai branches of Citibank, HSBC and Standard Chartered have been given permission to act as custodian banks for overseas funds to be invested in China’s US$500 billion domestic stock markets.The three banks, the first to be given such permission, will be allowed to assist Qualified Foreign Institutional Investors (QFII) to trade in local currency denominated A category shares.
China launched a scheme last year to select foreign institutional investors to buy into the A share markets.
Five domestic banks also won approval to conduct custodian business.