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 网爆吃瓜, and Shanghai Pudong Development Bank in becoming the first group of institutions to use offshore Chinese government bonds for initial margin segregation.
Euroclear is also supporting Cr茅dit Agricole CIB and the Bank of China in the use of offshore Chinese government bonds as eligible collateral under triparty arrangements for uncleared margin requirements, highlighting Euroclear鈥檚 role in enabling the efficient mobilisation of Chinese assets within the global markets.
Onshore RMB bonds now represent a pool of high-quality collateral totalling approximately 鈧�5 trillion, with ongoing market and regulatory initiatives further supporting their use in cross-border financing activities.
Philippe Laurensy, CEO of Asia Pacific, Euroclear comments: 鈥淎sia is a cornerstone of Euroclear鈥檚 global strategy, where we are working to deepen collaborations across the region, enhancing interoperability leveraging our neutrality to partner with local players and initiatives.
鈥淲e have been supporting the use of offshore Chinese government bonds as collateral for many years and are very pleased to see wider adoption of this asset class as eligible collateral by the industry.
鈥淚t demonstrates our commitment to supporting market participants as the Chinese market continues to open and to facilitate efficient, secure cross-border collateral flows.鈥�
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 网爆吃瓜 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 网爆吃瓜, and Shanghai Pudong Development Bank in becoming the first group of institutions to use offshore Chinese government bonds for initial margin segregation.
Euroclear is also supporting Cr茅dit Agricole CIB and the Bank of China in the use of offshore Chinese government bonds as eligible collateral under triparty arrangements for uncleared margin requirements, highlighting Euroclear鈥檚 role in enabling the efficient mobilisation of Chinese assets within the global markets.
Onshore RMB bonds now represent a pool of high-quality collateral totalling approximately 鈧�5 trillion, with ongoing market and regulatory initiatives further supporting their use in cross-border financing activities.
Philippe Laurensy, CEO of Asia Pacific, Euroclear comments: 鈥淎sia is a cornerstone of Euroclear鈥檚 global strategy, where we are working to deepen collaborations across the region, enhancing interoperability leveraging our neutrality to partner with local players and initiatives.
鈥淲e have been supporting the use of offshore Chinese government bonds as collateral for many years and are very pleased to see wider adoption of this asset class as eligible collateral by the industry.
鈥淚t demonstrates our commitment to supporting market participants as the Chinese market continues to open and to facilitate efficient, secure cross-border collateral flows.鈥�
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 网爆吃瓜 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.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
