Citi Successfully Settles First Trades on HKEX Synapse Platform

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Hong Kong— Citi Securities Services announced the successful settlement of trades for China Asset Management (Hong Kong) [ChinaAMC (HK)] on the Hong Kong Exchanges and Clearing Limited (HKEX) Synapse platform, which went live for trade settlement yesterday. This was among the first trades executed and settled on the newly launched Synapse platform.

Synapse is HKEX’s new integrated settlement acceleration platform designed to complement the existing Northbound Stock Connect post-trade infrastructure. Launched in 2014, Stock Connect is a landmark mutual market access program connecting the equity markets of Mainland China and Hong Kong, paving the way for Hong Kong and international investors to access the China A Share market.

Citi has worked closely with HKEX, since being invited to participate in the Synapse pilot project in 2019, to develop and bring online a fully automated API-powered Synapse connectivity solution. Citi is the first and only bank in Hong Kong to offer this capability and in the process has fully aligned its custody platform to offer the complete benefits of Synapse to its clients.

HKEX Head of Emerging Business and FIC, Glenda So, said: “We warmly welcome Citi as one of the inaugural participants to HKEX Synapse. This new integrated settlement acceleration platform for Stock Connect will enhance operational efficiencies and help support the development of a more robust and interconnected market ecosystem. Citi is the first participant to fully integrate its custody platform with Synapse, enabling seamless execution of trades from Day 1. We would like to thank them and all participants that have supported the design, build, and roll-out of Synapse and we look forward to welcoming more participants to the platform as it continues to grow.”

The development of Synapse by HKEX is complementary to the global push towards settlement cycle reduction, as seen most recently in North America which is preparing to move to a T+1 settlement cycle around May 2024. The Synapse platform provides international and local investors with greater transparency and visibility over transaction statuses, which is important given the time zone differences that affect operating and processing hours.

“We are delighted to be among the first group of asset managers to pilot the HKEX Synapse platform. This marks another significant win in optimizing the two-way flow of capital between Hong Kong and the Mainland,” said Tian Gan, CEO of ChinaAMC (HK). “As a leading Chinese fund management company in Hong Kong, we are working diligently with our partners such as Citi as our custodian, to prepare for this rollout, as we connect China and the world.”

“Stock Connect is the preferred route for international investors accessing Mainland China securities. The API solution that Citi has designed is fully compatible with Synapse and will help address existing operational complexities. The development of Synapse further cements Hong Kong’s position as a leading international financial hub as it innovates and enhances its existing market infrastructure to provide a seamless experience to investors,” said Caroline Chan, Hong Kong Head of Securities Services at Citi.

With approximately USD$27.8 trillion1 of assets under custody, administration, and trust worldwide, and a leading proprietary network spanning more than 60 markets, Citi Securities Services provides cross-border support for clients with extensive on-the-ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of securities services solutions that can be tailored to meet clients’ needs.

About Citi:

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management, and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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