China Construction Bank (CCB) and Hang Seng Bank held a QFII Custodian Agreement Signing Ceremony in Beijing on 24, June 2004. This ceremony marks the beginning of a formal cooperation relationship between the two banks in the field of QFII business. And this is the second time for CCB to sign QFII custodian agreement.

    Hang Seng Bank was approved by the China State Administration of Foreign Exchange for an investment quota of US$ 50 million on June 24. So far, including Hang Seng Bank, there has been 15 foreign institutional investors that obtained approvals for the QFII status, with the investment quota of totaling US$ 1,825 million.  The implementation of QFII scheme boosts the growth of China’s capital market and provides new opportunities for domestic commercial banks to develop new businesses.

As the first domestic custodian bank, China Construction Bank has initiated sound cooperation relations with foreign institutional investors for more than one year. So far, CCB has equipped itself with experienced professionals in terms of QFII custodian business, and the ability also has been recognized by clients and the market. It is reported that, CCB is committed itself to improve the ability of working teams, service quality and tech systems in line with the global standards of custodian banks. The competent personnel in charge of this business said, with the rapid progress of CCB’s restructuring program, CCB has improved its mechanism, management and tech innovations dramatically, which will surely facilitate CCB to be a good and competitive custodian throughout the world as soon as possible. As a result, CCB can offer better services to both domestic and overseas clients. 

    Hang Seng Bank, founded in 1933, has developed itself into the largest local bank in Hong Kong and the second largest listed bank in terms of market capitalization. With the total asset of HK$ 503 billion at the end of 2003, Hang Seng Bank plays an important role in Hong Kong. As the first bank in Hong Kong that received QFII status, Hang Seng Bank believed that the cooperation between the two banks will definitely enjoy a good future and said, they will try their best to make a major milestone in the further cooperation between domestic financial institutions and Hong Kong ones.