Group 1 - HSBC China has successfully launched its first public fund custody business in the Chinese market, marking a significant expansion for foreign banks in this sector [1] - The custody services provided by HSBC China include fund clearing, asset valuation, and compliance supervision for the E Fund's Hong Kong Stock Connect Consumer Mixed Securities Investment Fund, which is the first domestic public fund product managed by a foreign bank [1] - HSBC aims to leverage its "local + global" service capabilities to support local funds in global asset allocation and overseas business development, while also facilitating global asset management institutions in deepening their presence in the Chinese market [1] Group 2 - As of November 2025, there are 165 public fund management institutions in China, with a total net asset value of public funds amounting to 37.02 trillion yuan [2] - The public fund custody business is increasingly recognized for its strategic value as a key component of the asset management ecosystem [2]

Core Insights - HSBC China has successfully launched its first local public fund custody business in the Chinese market, marking a significant expansion for foreign banks in this sector [1][2] Group 1: HSBC's Custody Services - HSBC China is acting as the custodian bank for E Fund Management Co., Ltd.'s Hong Kong Stock Connect Consumer Mixed Securities Investment Fund, providing services such as fund clearing, asset valuation, and compliance supervision [2] - This fund is notable as it is the first domestic public fund product managed by a foreign bank in China, with HSBC also serving as one of the initial distribution banks for the fund [2] - HSBC China's Vice President Zhang Jinqiu emphasized the vast opportunities in China's asset and wealth management market, which is the second largest globally, and the bank's commitment to supporting local funds in global asset allocation and overseas business development [2] Group 2: Industry Context and Trends - As of November 2025, there are 165 domestic public fund management institutions in China, with total net assets amounting to 37.02 trillion yuan, highlighting the strategic importance of custody services in the asset management ecosystem [4] - The entry of foreign banks into the fund custody market has accelerated, with five foreign banks, including HSBC China, obtaining qualifications for securities investment fund custody [4] - The regulatory framework has been clarified since the joint revision of the "Securities Investment Fund Custody Business Management Measures" by the China Securities Regulatory Commission and the former Banking and Insurance Regulatory Commission in July 2020, facilitating foreign banks' entry into the fund custody market [4]

Group 1 - HSBC China has successfully launched its first local public fund custody business in China, marking a significant expansion in the custody services offered by foreign banks [2][4] - The custody services provided by HSBC include fund clearing, asset valuation, and compliance supervision for the E Fund's Hong Kong Stock Connect Consumer Mixed Securities Investment Fund, which is the first domestic public fund product managed by a foreign bank [4][5] - HSBC's entry into the public fund custody sector is seen as a strategic move to support local funds in global asset allocation and to enhance the development of China's capital market [4][6] Group 2 - As of November 2025, there are 165 domestic public fund management institutions in China, with a total net asset value of 37.02 trillion yuan, highlighting the growing importance of custody services in the asset management ecosystem [7] - The entry of foreign banks into the fund custody market has accelerated, with five foreign banks, including HSBC, Standard Chartered, Citibank, BNP Paribas, and Deutsche Bank, having obtained custody qualifications [7] - The collaboration between HSBC China and E Fund is viewed as a significant step towards enhancing the openness and diversification of the public fund custody market in China [7]