Clearstream, the international central securities depository within the Deutsche Börse Group, and Chinaclear, the securities depository for the Chinese capital markets signed a "Memorandum of Understanding" to explore the potential of delivering improved post-trade services to the securities markets of China.
Chinaclear is the brand name for the China Securities Depository and Clearing Corporation Limited (SD&C) which was established in March 2001, to manage the entire securities registration and clearing business. Currently, SD&C is China's sole national securities depository, clearing and registration company providing services for the two stock exchanges in Shanghai and in Shenzhen.
Clearstream has a long-established presence in the region with a regional office in Hong Kong for over 14 years. Clearstream's business in Asia has risen strongly over several years with annual growth rates of 18% in assets under custody.
The agreement means that the two parties will enter into detailed discussions and share expertise on clearing, settlement and custody operations and to explore the opportunity of a combined initiative or operational linkage to deliver a wider range of efficient services to the local market.
Clearstream is a subsidiary of Deutsche Börse Group, which has established a close working relationship with the Shanghai Stock Exchange. The Shanghai Stock Exchange, which operates the largest Chinese equity market, uses the Deutsche Börse Xetra technology as the core of its next generation trading platform.
Chen Yaoxian, Chairman of the China Securities Depository and Clearing Corporation Limited stated, "SD&C firmly believes that the MOU between SD&C and Clearstream will further promote our cross-border communication and cooperation on securities depository and clearing services, which helps us establish an open, flexible and unified securities registration and settlement system in line with international standards and practices, better serving market players and supporting the development of China's securities market."
Volker Potthoff, Managing Director of Clearstream's Banking and Custody Division added, "Clearstream looks forward to extending the relationship with Chinaclear and thereby delivering enhanced services to market participants in the region. This is an exciting opportunity for us to further show the commitment of Deutsche Börse Group to the development of the Chinese Capital Markets."