HSBC Pioneered Credit Risk Mitigation Certificate

On the 24 day, HSBC (China) Limited released a press release saying that its first "credit risk mitigation certificate" was created today.

This is the first Chinese foreign bank to create such credentials since China launched its credit risk mitigation tool in early November.

The introduction of credit risk mitigation tools aims to help domestic institutional investors manage credit risk.

The first voucher of HSBC China's first voucher is "the third phase note of the PetroChina Co Ltd in 2010", and the nominal total amount of RMB is 10 million yuan, and the guarantee period is one year.

"In recent years, China's credit market is in the ascendant, and the issuance of corporate bonds has accelerated its development," said Liao Yijian, managing director and global capital market director of HSBC China.

The introduction of credit risk mitigation tools has become an important step in the development of domestic credit market.

As one of these tools, "credit risk mitigation certificate" can provide a standardized and pparent platform for credit risk pfer for the market.

HSBC China has been the first batch of "credit risk mitigation tools" dealers and core dealers in the early November of this year. It has also become one of the first institutions to create credit risk mitigation certificates. It is also a minority of foreign banks that have obtained two pactions at the same time.

The inter bank market dealers association of China launched the "credit risk mitigation tool" in early November this year, including the "credit risk mitigation contract" (CRMA) and the "credit risk mitigation certificate" (CRMW).

The introduction of these tools provides an effective credit risk management tool for institutional investors to help them hedge their credit risk and improve the market credit risk sharing mechanism.

HSBC China was officially opened as the first locally incorporated foreign-funded corporate bank in April 2, 2007, and is wholly owned by Hongkong and Shanghai Banking Corporation Limited, the parent company of the Hongkong Special Administrative Region. Its predecessor was Hongkong and Shanghai Banking Corporation Limited's original mainland China branch.