BNP Paribas: 20B yuan bonds quota for up to two years

BNP Paribas (China) Ltd has taken a significant step in expanding its presence in China's financial markets by securing initial approval for a securities investment fund custody license from the China Securities Regulatory Commission (CSRC). This license will enable the bank to offer custody services directly to funds operating within China, aligning with the country's ongoing efforts to liberalize its financial sector. The move follows BNP Paribas's 2024 acquisition of a Qualified Foreign Institutional Investor (QFII) custodian and settlement license, which allowed the institution to support foreign investors in accessing China's equities and bond markets.

China's regulatory framework has increasingly prioritized openness, with over 120 foreign-invested banks and insurance companies established between 2018 and 2021 under measures introduced by the China Banking and Insurance Regulatory Commission (CBIRC). Foreign institutions, including Standard Chartered Bank (China) Ltd and DBS Bank (China) Ltd, have similarly leveraged these reforms to deepen their market participation, reflecting a broader trend of cross-border financial integration.

The asset management sector in China has also experienced robust growth, with assets under management reaching 66.24 trillion yuan ($9.81 trillion) by the first quarter of 2026, according to the Asset Management Association of China. As foreign banks navigate evolving regulatory and market dynamics, their ability to adapt to China's structured opening—such as through joint ventures or wholly foreign-owned entities—will remain critical to long-term success.

(http://global.chinadaily.com.cn/a/202207/21/WS62d8aa62a310fd2b29e6d89d.html): BNP Paribas eyes fund custody operations in nation, China Daily, 2022.