Onboarding procedures - Hong Kong - China Connect securities
Stock Connect onboarding procedures
Customers who want to invest in Stock Connect must open an SPSA (Special Segregated Account) and obtain an Investor ID via CBL.
Customers can use their existing CBL account to participate in the Stock Connect under the condition that the account structures (client or proprietary assets) for both CBL and Stock Connect SPSA are the same.
Customers opening the SPSA account on behalf of their underlying client who requires a segregated account setup in the market (for example a fund-type client) must open a new CBL sub-account for this purpose.
The customer is required to do the following:
Open a sub-account at Citibank Hong Kong via CBL by submitting an Xact Web Portal or Swift MT599 free-format message to CBL (BIC: CEDELULL) with the following details:
- Attention: Settlement Singapore Team
- Customer CBL Account Number:
- Customer CBL Account Name:
- "Please take this MT599 as our request to open a new sub-account at Citibank HK for the purpose of opening a SPSA account and obtaining an Investor ID."
- Full name(s) of Exchange Participant (EP) Exchange Participant ID (up to 20 only) and EP email address (optional).
By submitting the sub-account opening request, the customer is deemed to have assessed and accepted the risks relating to the trading and settlement of Stock Connect, the customer acknowledges that the Stock Connect will not be subjected to Client Securities Rules and Client Identity Rules regulated by the SFC; the customer agrees to share the following information for the appointed Exchange Participant(s), SPSA account and Investor ID for broker registration.
All relating accounts (Sub-account with Citibank HK, SPSA Account and Investor ID with CCASS) opened through CBL will be registered in the following format: Clearstream Banking S.A. - <CBL customer name>
Broker Maintenance Request
The customer is required to send an Xact Web Portal or Swift MT599 free-format message to CBL (BIC: CEDELULL) with the following details:
- Attention: Settlement Singapore Team
- Customer CBL Account Number:
- Customer CBL Account Name:
- Customer Sub-account Number:
- Investor ID:
- Alert Fund ID: [Optional: please insert the DTCC Alert Fund ID if available]
- IM Name: [Optional: please insert the Investment Manager name if available]
- "Please take this MT599 as our request to <add/delete> executing broker(s)."
- Exchange Participant Name:
- Exchange Participant ID:
SPSA Account Closure
Customers must ensure the removal of all broker(s) from the SPSA account by requesting broker deletion via the Broker Maintenance Request procedure. Upon broker deletion, the customer can proceed with the SPSA account closure by sending an Xact Web Portal or Swift MT599 free-format message to CBL with the following details:
- Attention: Settlement Singapore Team
- Customer CBL Account Number:
- Customer Sub-account Number:
- SPSA Account Number: "Please take this MT599 as our request to close the SPSA account and the sub-account with Citibank Hong Kong".
Bond Connect onboarding procedures
Customers who want to invest in Bond Connect must open a CMU sub-account and to apply for CFETS Trading ID via CBL.
Customers can use their existing CBL account to participate in Bond Connect under the condition that the account structures (client or proprietary assets) for both CBL and Bond Connect (CMU sub-account) are the same.
The customer is required to do the following:
1. Open a sub-account at Citibank Hong Kong via CBL by submitting an Xact Web Portal or Swift MT599 free-format message to CBL (BIC: CEDELULL) with the following details:
- Attention: Settlement Singapore Team
- Customer CBL Account Number:
- Customer CBL Account Name:
- "Please take this MT599 as our request to open a new sub-account at Citibank HK for the purpose of opening a CMU sub-account to settle and safekeep Bond Connect securities.”
By submitting the sub-account opening request, the customer is deemed to have assessed and accepted the potential risks associated with the Bond Connect securities. Such risks include, but are not limited to, the macro economic environment and the policy direction of the PRC, change in the applicable laws and regulations and policies, foreign currency risks, credit risks associated with the issuers of Bond Connect Securities as well as risks associated with the settlement process under Bond Connect, which may not be real-time “delivery versus payment” (DVP). The customer agrees to share necessary information with relevant regulators or Bond Connect market infrastructures such as HKMA, CFETS, HKEx, Bond Connect Company Limited (BCCL), Tradeweb, etc. for purpose of facilitating completion of relevant Bond Connect market admission.
The sub-account with Citibank HK opened through CBL will be registered in the following format: Clearstream Banking S.A. - <CBL customer name>
Each safekeeping account should be linked to its corresponding CFETS Trading ID and CMU sub-account number.
2. CFETS Trading ID registration and documentation:
- Customers should visit to the Bond Connect website to access the Handbook to Bond Connect Admission for guidance. Application forms can be found under Filing and other Administrative forms. Please note that hand-written forms are not accepted by BCCL.
- Upon processing the customer’s sub account request, CBL will provide the CMU sub-account number reserved for Bond Connect for customers to complete the Annex 3 of the registration form. Citibank HK can assist to perform a preliminary check on the documents.
- Customers must email a colour-scanned copy of the completed forms to CBL for submission to CFETS. Annex 6 must be delivered to BCCL by post.
- The forms are required on a bilingual basis, for this reason customers should consider signing up for the free translation service offered by BCCL if necessary. Please refer to the Translation Service Agreement for more information.
3. Subsequent changes to CFETS Trading ID registration and Exit Bond Connect:
- Please refer to the Bond Connect website under Filing and other Administrative forms.
The completed forms should be emailed to CBL for submission to CFETS.