State Street Wins China FX Mandate
Posted by Colin Lambert. Last updated: November 16, 2022
State Street has been appointed by China’s Harvest Fund Management to provide onshore CNY foreign exchange hedging services for their Qualified Domestic Institutional Investor (QDII) investment funds.
State Street has a long-term partnership with Harvest, having supplied the firm with a wide range of global custody services since 2010.
“China’s asset management market is rapidly evolving and domestic investors are looking to diversify their portfolios by increasing global investments,” Harvest says in a statement. “We are excited to expand our relationship with State Street, allowing us to leverage State Street’s global scale and experience to access new asset classes and financial products.”
Shen Li, head of global markets, China at State Street, adds, “This mandate is an important milestone for State Street’s FX business expansion in China. It demonstrates the value we deliver to onshore Chinese financial institutions, supporting their investments in global markets. We are pleased to continue supporting Harvest on the growth of their global investment fund management.”
In early 2022, State Street began providing onshore CNY FX liquidity on spot, forward and swaps with a Beijing FX trading desk. The firm offers FX services to fulfill the FX demand for security settlement and currency hedging of offshore investors’ inbound investments via the Bond Connect, CIBM Direct and QFII channels, or onshore investors’ outbound investments via the QDII program.