HSBC is providing asset services to Shinhan BNP Paribas Asset Management, which has become the first Korean institutional investor to receive a license to access China's onshore capital markets via the Renminbi Foreign Institutional Investor (RQFII) scheme.

HSBC facilitated Shinhan BNP Paribas Asset Management's application process and will act as trustee, global custodian and RQFII custodian for its RQFII funds.

Martin Tricaud, president and CEO for HSBC in Korea said, "Shinhan BNP Paribas Asset Management's license demonstrates Korean investors' strong interest in the Chinese capital markets. This landmark deal also helps develop Korea as an offshore renminbi centre by opening up a new channel of renminbi flows back into China under the RQFII pilot scheme. HSBC offers clients our strengths and experience as the leading custodian bank servicing foreign institutional investors in China and our global network, including strong collaboration between our China and Korea teams. We will continue to support the Korean government initiative to promote renminbi internationalization in Korea and to ensure that our clients here benefit from the globalization of China's currency."

In July 2014, China allocated an 80 billion renminbi RQFII quota to Korea as part of its policy of opening up its domestic capital markets to global investors. The rapid liberalization of cross-border capital flows has been welcomed by investors and has allowed HSBC to record a number of "firsts" in servicing foreign institutional investors in mainland China this year. In January, the bank became the first custodian bank for a London-based RQFII manager and custodian bank for the first RQFII exchange-traded fund to be listed in Europe. In May, HSBC was named as the first custodian bank for a Singapore-based RQFII manager.