2023-07-11 12:37:45
St. Petersburg Stock Exchange, 11 Jul, 15:37
SPB Exchange set up a safe custody chain for Hong Kong assets
Starting July 12, SPB Exchange will begin trading in units of Hong Kong exchange-traded funds, which are held through friendly depositories. Other papers listed in Hong Kong will subsequently also be transferred to the built infrastructure
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SPB Exchange will transfer Hong Kong securities to a friendly infrastructure by the end of 2023, the press service of the trading platform told RBC Investments. A chain of friendly depositories will be used for their storage and settlements.
The first Hong Kong instruments to be traded on the exchange through a completely friendly infrastructure will be exchange-traded funds (ETFs) with a primary listing on the Hong Kong Stock Exchange. Trading in securities of Hong Kong ETF SPB Exchange will launch tomorrow, July 12th. Settlements will be made in yuan and Hong Kong dollars.
“For the first time, a chain of friendly international depositories will be used to store and settle securities of such ETFs. Other Hong Kong instruments are planned to be transferred to the built infrastructure before the end of the year, ”a site representative explained to RBC Investments.
SPB Exchange will launch trading in Hong Kong ETFs with settlements in yuan on July 12
In March 2022, the Russian government approved a list of foreign states and territories that commit unfriendly actions once morest Russia or Russian legal entities and individuals. The list of such countries includes all EU countries, as well as Australia, Great Britain, Iceland, Norway, Canada, New Zealand, USA, Ukraine, Japan and a number of other states and territories. Foreign Minister Sergei Lavrov declaredthat Russia considers friendly all states that are not included in this list.
Roman Goryunov, the head of the SPB Exchange, said earlier that the SPB Exchange plans to start using depositary accounts in a friendly jurisdiction for the safe storage of securities, including shares of companies listed on the Hong Kong Stock Exchange, by the end of 2023.
“We are building an infrastructure for storing securities that is not connected with unfriendly countries. As you understand, according to common sense, this is a jurisdiction associated with Hong Kong. The launch date is before the end of the year, ”Goryunov said then. He also clarified that the site uses accounts with brokers and international banks in friendly jurisdictions.
SPB Exchange will provide access to Hong Kong securities with settlements in yuan
The head of the SPB Exchange for the first time announced that the exchange would build a chain of friendly depositories to maintain access to Hong Kong securities for unqualified investors in October 2022. However, at that time it was still unknown where exactly securities with a primary listing in Hong Kong, circulating on the SPB Exchange, are taken into account.
From April 1, the Bank of Russia required brokers to warn unqualified investors regarding the risks of blocking friendly securities if they are stored in depositories of unfriendly countries. After that BCS, “Digital Broker”“Alor” and Expobank announced that they would temporarily ban market newcomers from buying Hong Kong securities – brokers encountered technical difficulties in implementing the order.
RBC Investments found out that there are hostile depositories in the chain of custody of Hong Kong and mainland Chinese securities traded on the SPB Exchange. Among such securities were China Construction Bank, PetroChina, Sinopec Shanghai Petrochemical, Agricultural Bank of China, Sinopharm and Lenovo Group.
SPB Exchange compiled a list of securities held in unfriendly countries
At present, shares of 115 issuers with primary listing on the Hong Kong Stock Exchange are traded on the SPB Exchange. At the end of December, Roman Goryunov noted that the site plans to increase the number of traded Hong Kong securities to 500 by the end of 2023.
Author: Ksenia Kotchenko.
With the participation of: Dmitry Polyansky.
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