China Government Bond Futures Market Opening Gains Momentum as Standard Chartered Completes First QFI Transaction

China Government Bond Futures Market Opening Gains Momentum as Standard Chartered Completes First QFI Transaction

(IN BRIEF) Standard Chartered Bank China has completed its client’s first Qualified Foreign Investor transaction in China Government Bond Futures, following the recent opening of the market to QFIs for hedging purposes. The bank acted as both custodian and futures margin depository bank, supporting the full execution of the trade. The market opening was announced on 24 April 2026 by the China Securities Regulatory Commission, the People’s Bank of China and the State Administration of Foreign Exchange, allowing QFIs to trade China Government Bond Futures as an onshore risk management instrument. Standard Chartered said it is the only foreign bank among the initial group of six approved banks participating in China Government Bond Futures, positioning it to support global institutional investors seeking portfolio diversification and hedging tools in China’s capital markets. The transaction also builds on Standard Chartered’s long history in China’s custody business, which began in 1992, and its role across inbound and outbound market access schemes including QFI, China Interbank Bond Market, Stock Connect, Bond Connect and Qualified Domestic Institutional Investor.

(PRESS RELEASE) LONDON, 28-May-2026 — /EuropaWire/ — Standard Chartered Bank China has completed its client’s first Qualified Foreign Investor transaction in China Government Bond Futures, marking an important milestone following the latest opening of China’s onshore futures market to international institutional investors.

The transaction was completed after Chinese regulators recently allowed Qualified Foreign Investors to trade China Government Bond Futures for hedging purposes. Standard Chartered Bank China supported the full execution of the trade, acting both as the Qualified Foreign Investor’s custodian and as the futures margin depository bank.

On 24 April 2026, the China Securities Regulatory Commission, together with the People’s Bank of China and the State Administration of Foreign Exchange, formally permitted Qualified Foreign Investors to participate in China Government Bond Futures trading for hedging. The move expands access to onshore risk management tools and gives global institutional investors more options to manage exposure in China’s fixed-income market.

Jerry Zhang, Global Head of Banks and Broker Dealers and Head of Coverage for Greater China and North Asia at Standard Chartered, said the bank is the only foreign bank among the first group of six banks approved to participate in China Government Bond Futures. He said the opening of the product to Qualified Foreign Investors represents another step in the continued development and internationalisation of China’s capital markets.

Zhang added that global institutional investors have shown strong demand for more advanced risk management and portfolio diversification tools in China. With its international network and cross-border capabilities, Standard Chartered is positioned to support clients as they execute China investment strategies more efficiently and effectively.

Pierre Mengal, Regional Head of Financing and Securities Services for Greater China and North Asia at Standard Chartered, said the completion of the inaugural transaction just over a month after the market opening reflects the bank’s close collaboration with local regulators and partners. He also highlighted Standard Chartered’s long-standing expertise across China market access schemes and the strength of its local operations.

Mengal said Standard Chartered looks forward to helping more global investors access China’s capital markets with speed and confidence, supported by the bank’s decades of on-the-ground presence and established service capabilities.

Standard Chartered has been active in China’s capital market custody business since 1992. The bank is a leading custodian across inbound schemes, including Qualified Foreign Investor, China Interbank Bond Market, Stock Connect and Bond Connect, as well as outbound schemes such as Qualified Domestic Institutional Investor.

In 2018, Standard Chartered China became the first international bank to receive a domestic fund custody licence. Since then, the bank has provided custody services for products from local brokers, fund managers and wholly foreign-owned enterprises. It continues to develop its role as a bridge between local and overseas investors, supporting broader collaboration across China’s financial markets.

About Financing and Securities Services
Standard Chartered’s Financing & Securities Services provides custody, clearing, fiduciary, fund and digital asset solutions to institutional clients across Asia, Africa and the Middle East. The business supports clients across the investment lifecycle, bringing together global reach, deep local expertise across more than 100 markets, and innovation aligned to clients’ evolving needs.

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SOURCE: Standard Chartered