A traffic light shines red near the HSBC bank logo, pictured at the bank buidling in Paris, June 15, 2015. REUTERS/Christian Hartmann ZURICH (Reuters) - HSBC (HSBA.L) will store Swiss Re’s SRENH.VX Chinese securities as part of a plan to enable foreign investors to use offshore yuan to buy stocks and bonds in mainland China, the British bank on Monday. The investment scheme, known as the Renminbi Qualified Foreign Institutional Investor (RQFII), was created in 2011 to let financial investors place some of their yuan holdings in China. The British bank said in a statement the agreement made it the first custodian bank in China to service a RQFII based in Switzerland. Reporting by Joshua Franklin
HSBC set to become Swiss Re’s custodian bank in China as part of plan to allow foreign investors to use offshore yuan when buying stocks and bonds in China. The move comes after the Chinese government announced plans for a new “yuan-denominated bond market” that would be open to all domestic investors.