Saxo Bank, a fintech and regtech specialist focused on multi-asset trading and investment, announced on March 4 that it is broadening access to Chinese securities, strengthening its position as a gateway to China for its international client base.

Qualified institutional clients are now able to trade mainland Chinese bonds through Saxo Bank. The connectivity is enabled via the Hong Kong-based Bond Connect mechanism, which is a mutual bond access programme launched in 2017, allowing overseas and mainland China investors to trade in each other's bond markets. The launch of mainland China bonds further strengthens Saxo Bank’s unparalleled global multi-asset trading and investment platforms - available in more than 20 languages - which also gives unique access to China A-shares listed on the Shanghai and Shenzhen stock exchanges.

Saxo Bank is the first in the market to offer full digital access to mainland China bonds through the Bond Connect gateway via a simple click to trade functionality. With options to invest in things like Chinese onshore government bonds and central bank paper, institutional clients get simple, efficient automated access to a market that has historically been complicated and cumbersome for foreign investors to access.

The Chinese bond market is among the largest in the world with a size of US$12 trillion, and Chinese bonds are increasingly added to global indices which makes Chinese bonds relevant for international investors looking to build diversified portfolios.

This means that Saxo Bank’s clients will be able to access a market that is destined to see activity increase drastically as international investors come to understand the importance of the Chinese bond market, and Chinese government bonds in particular. In compliance with People’s Bank of China’s regulations, qualified institutional investors will have access to 127 China bonds with the renminbi as a settlement currency.

“Chinese securities are an increasingly important part of an international investors’ portfolio, as demonstrated by record inflows into Chinese stocks in January this year, as well as strong international inflows into Chinese bonds in 2018. At the same time, Chinese government bonds emerged among the best-performing government bonds of 2018. We are therefore proud to be the first to deliver full digital access to Chinese bonds to help our clients build strong, diversified investment portfolios,” said Fan Xu, CEO of Greater China, Saxo Bank.

Saxo has a strong track record in the fixed income markets, having launched its digital bond trading solution in 2016, which is fully integrated into Saxo’s multi-asset trading and investment platforms. Saxo offers access to over 5,000 bonds, including more than 3,400 developed-market and over 1,600 emerging-market bonds. Each bond order is directed to an optimised dealer auction which is selected from up to 40 of the largest bond liquidity providers, ensuring higher speed of execution and tighter pricing.