Clearstream enables use of offshore Chinese government bonds
02 February 2026 China
Image: Parilov/stock.adobe.com
Clearstream has opened up the possibility for international investors to use offshore Chinese government bonds as collateral.
The company supported Cr茅dit Agricole CIB, CITIC Securities, and Shanghai Pudong Development Bank in becoming the first group of institutions to use offshore Chinese government bonds for initial margin segregation.
China鈥檚 vast bond market, the second largest in the world at US$26 trillion in volume outstanding, is becoming increasingly accessible to international investors.
This has been made possible through initiatives like Bond Connect, a cross-border investment programme that links the Mainland China and Hong Kong bond markets, and the opening of China鈥檚 interbank repo market to qualified foreign institutions.
Clearstream says as Chinese collateral becomes more mobile, it will be critical that market participants holding this collateral outside of China can use it efficiently within the established infrastructure of global capital markets, including for initial margin segregation.
Philip Brown, CEO at Clearstream Banking, states: 鈥淐onnecting global markets has always sat at the heart of Clearstream鈥檚 strategy, and this pioneering step, taken in partnership with Cr茅dit Agricole CIB, CITIC Securities Company Limited, and Shanghai Pudong Development Bank, is a testament to that.
鈥淎t Clearstream, a key purpose is to provide the market with innovative solutions embedded within a deeply trusted environment.
鈥淲ith this effort, we do just that; providing the reliable framework that allows clients to confidently integrate Chinese collateral into their global strategies, translating a historic market development into a tangible opportunity for greater capital efficiency.鈥�
Wendy Zhu, head of global markets division, Cr茅dit Agricole CIB China, adds: 鈥淎s a forerunner in facilitating the internationalisation of Chinese sovereign bonds, Cr茅dit Agricole CIB is among the first to embrace multi-currency Chinese sovereign bonds, including CNH-denominated government bonds, as eligible collateral for derivatives margin.
鈥淭his step helps establish a practical model for expanding the international application of Chinese bonds.鈥�
In many areas, initial margin segregation is a main regulatory requirement for collateral posted upfront to cover over-the-counter (OTC) derivatives transactions.
Clearstream offers initial margining services for both cleared and uncleared OTC derivatives from a single collateral pool, allowing clients to hold multiple currencies and asset classes in a single location.
The company supported Cr茅dit Agricole CIB, CITIC Securities, and Shanghai Pudong Development Bank in becoming the first group of institutions to use offshore Chinese government bonds for initial margin segregation.
China鈥檚 vast bond market, the second largest in the world at US$26 trillion in volume outstanding, is becoming increasingly accessible to international investors.
This has been made possible through initiatives like Bond Connect, a cross-border investment programme that links the Mainland China and Hong Kong bond markets, and the opening of China鈥檚 interbank repo market to qualified foreign institutions.
Clearstream says as Chinese collateral becomes more mobile, it will be critical that market participants holding this collateral outside of China can use it efficiently within the established infrastructure of global capital markets, including for initial margin segregation.
Philip Brown, CEO at Clearstream Banking, states: 鈥淐onnecting global markets has always sat at the heart of Clearstream鈥檚 strategy, and this pioneering step, taken in partnership with Cr茅dit Agricole CIB, CITIC Securities Company Limited, and Shanghai Pudong Development Bank, is a testament to that.
鈥淎t Clearstream, a key purpose is to provide the market with innovative solutions embedded within a deeply trusted environment.
鈥淲ith this effort, we do just that; providing the reliable framework that allows clients to confidently integrate Chinese collateral into their global strategies, translating a historic market development into a tangible opportunity for greater capital efficiency.鈥�
Wendy Zhu, head of global markets division, Cr茅dit Agricole CIB China, adds: 鈥淎s a forerunner in facilitating the internationalisation of Chinese sovereign bonds, Cr茅dit Agricole CIB is among the first to embrace multi-currency Chinese sovereign bonds, including CNH-denominated government bonds, as eligible collateral for derivatives margin.
鈥淭his step helps establish a practical model for expanding the international application of Chinese bonds.鈥�
In many areas, initial margin segregation is a main regulatory requirement for collateral posted upfront to cover over-the-counter (OTC) derivatives transactions.
Clearstream offers initial margining services for both cleared and uncleared OTC derivatives from a single collateral pool, allowing clients to hold multiple currencies and asset classes in a single location.
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