CIMB Bank Berhad recently signed an agreement to appoint China Construction Bank Corporation as CIMB Bank’s sub-custodian bank in mainland China to clear, settle and safekeep China shares, bonds and other investment products on behalf of CIMB Bank and its clients.
Both parties also signed a Memorandum of Understanding (MoU) where CCB will appoint CIMB Bank as its sub-custodian bank to clear, settle and safekeep CCB customers’ investment portfolio in Malaysia. In addition, both organisations agreed to explore further collaboration to appoint each other as onshore settlement agents in respect of each party’s inter-bank bond market activities.
On hand to witness the signing of the documents between the two institutions were Hendra Lembong, Group Head, Transaction Banking, CIMB Group and Pang Xiusheng, Executive Director, Executive Vice President, China Construction Bank Corporation.
Hendra Lembong said, “CIMB Bank is pleased to collaborate with China Construction Bank to provide investors with the platform to make cross-border investments into the Malaysian and Chinese markets. This collaboration is the start of meaningful partnership between our organisations as we leverage on each other’s networks and platforms to improve our market share and leadership and more importantly, to serve our customers better.”
With this arrangement, CIMB will be able to support portfolio investments into China for Qualified Foreign Institutional Investors (“QFII”), RMB Qualified Foreign Institutional Investors (“RQFII”) and China Inter-Bond Market (“CIBM”) investors.