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Banque de Luxembourg picks Citi for Shanghai Connect access
17 January 2017
The Shanghai-Hong Kong Stock Connect program was created in 2014.
Citi has been appointed by Banque de Luxembourg to provide
access to Shanghai-Hong Kong Stock Connect, the cross-boundary
investment channel that connects the Shanghai Stock Exchange
and the Hong Kong Stock Exchange.
The firm has also been picked to provide custody services
for A-Shares, renminbi-denominated shares of companies traded
in Shanghai or Shenzhen, acquired through the link.
The move allows Banque de Luxembourg’s investor
clients to benefit from Citi’s "SPSA+" solution
which offers delivery versus payment (DVP) settlement with
The tool allows both securities and cash to be settled
simultaneously on T+0 and also facilitates the post-trade
process and therefore helps investors reduce the risk of fail
trades and potential buy-in claims from their brokers.
The Shanghai-Hong Kong Stock Connect program was created in
2014. A similar model, linking Shenzhen and Hong Kong kicked
off at the end of 2016.
"A scalable, automated and efficient solution for Stock
Connect will become increasingly more important as volumes
increase due to the inclusion of Shenzhen Connect and the
eventual inclusion of A-shares to global indices," said Cindy
Chen, Hong Kong Head of Securities Services at Citi.
Fernand Reiners, member of the executive committee at Banque
de Luxembourg, added: "This service is ideally positioned for
our clients’ needs as it meets all of their
requirements in terms of flexibility, operational efficiency