Investment bank China Renaissance has expanded its post-trade processing partnership with Broadridge Financial Solutions via Stock Connect to facilitate the clearing and settlement of both Shenzhen- and Shanghai-listed equities.
The expansion builds on the solutions China Renaissance has offered clients in equity trading via Stock Connect, with Broadridge’s post-trade solution implemented in March last year.
Additionally, the expansion follows the Hong Kong-listed equities processing that Broadridge has provided to China Renaissance since 2016.
Both firms are jointly preparing for upcoming market and regulatory changes, such as Hong Kong Exchange’s (HKEX) Synapse program – a new settlement platform on the Northbound Stock Connect programme – and Fast Interface for New Issuance (FINI) proposal, which aims to replace the existing T+5 process with T+1 for newly listed shares on HKEX.
“We have been impressed by the resilience of Broadridge’s systems and, as a technology partner, Broadridge understands and supports multiple markets, including north and southbound trading across asset classes,” said Andy Maynard, managing director and global head of equities at China Renaissance.
“We value our long-term relationship with Broadridge. Their experience with next-generation technologies for clearing and settlement will be beneficial for us to leverage as HKEX’s Stock Connect evolves, and the relationship allows us to be ahead of the curve for our clients.”
China Renaissance serves new economy entrepreneurs and investors globally by providing one-stop financial services across mainland China, Hong Kong and the United States.
The firm, as a means of realising its growth ambitions, chose Broadridge for its solutions that provide global scale and allow for multi-asset capabilities.
“China Renaissance has been able to bring more efficiency to its operations and enable its growth ambitions by leveraging Broadridge’s local expertise and global scale, as seen in the successful implementation of our post-trade processing solution for Stock Connect markets,” said Danny Green, general manager for international post-trade at Broadridge.
“Broadridge’s world-class technologies and experience in Asia have led us to become the technology provider of choice for many firms in the region. Our established platform allows clients to scale services with ease as they grow and continue to innovate through the adoption of The ABCDs of Innovation – AI, blockchain, the Cloud and digital, that continue to evolve into market practices.”
HKEX recently onboarded a group of major banks to join the pilot programme of Synapse. Unveiled in November last year, HKEX Synapse will utilise smart contracts to enable market participants to benefit from improved connectivity and capacity to handle the growing volume of trades though Stock Connect into China.