Deutsche Bank China has secured approval from the People's Bank of China to act as a qualified primary dealer for domestic open market businesses, becoming the first eurozone bank to obtain the qualification.
The approval allows Deutsche Bank to carry out open market business such as the repurchase of treasury bonds, policy financial bonds, spot bond transactions, central bank bill issuance, and other trading instruments.
Rose Zhu, the bank’s chief country officer in China, says: “This PBOC appointment recognizes the strength of Deutsche Bank’s capital markets franchise, and reflects China’s determination to continue opening up its capital markets. The rapid development of the China market provides broad opportunities for global participants and Deutsche Bank will continue to deepen the China market, leverage its global network, and exercise best practice risk management to support the country’s continuous capital markets opening and development."
Deutsche Bank already acts as market maker in China’s interbank bond market, bond settlement agent, and Bond Connect market maker. It is also one of two foreign banks that have qualifications as a Type-A lead underwriter for non-financial corporate debt financing instruments.
“As a leading European bank active in the domestic market and as one of the world’s major RMB banks, obtaining this qualification means that Deutsche Bank has the expertise and interbank licence to fully serve RMB customers,” says Deutsche Bank China’s head of global markets Jason Shi.
“By further strengthening the level of RMB-related liquidity risk management, Deutsche Bank can effectively interpret monetary policy guidance for domestic and overseas customers and partners, support the development of the domestic capital market and accelerate the internationalization of the RMB."
Deutsche Bank provides a full set of RMB bond investment services for a wide range of central banks and sovereign institutions, commercial banks, fund companies and insurance companies. Its Hong Kong branch acts as the RMB centre, linking with other branches to provide RMB spot and foreign exchange derivatives business.