Clearstream has become the first international central securities depository to offer global investors access to China's $8trn interbank bond market - third largest fixed income market in the world.

HSBC will act as the onshore bond settlement agent for Clearstream’s overseas institutional investor customers by providing trading execution, settlement and custody services.

Clearstream already provides the post-trade infrastructure for the Eurobond market. The firm services securities from over 56 markets worldwide and has nearly $14trn in assets under custody

Philip Brown, co-chief executive officer of Clearstream Banking, said the development coincides with the inclusion of the Chinese renminbi (RMB) into the IMF's Special Drawing Right (SDR) currency basket, which is expected to boost investors' demand for what is already the third largest bond market in the world.

“This also represents our focus on Asia and will enable us to offer our clients an attractive and efficient solution to build and further develop their exposure to China's onshore bond market,” said Brown.

Ian Banks, head of HSBC Securities Services for Asia-Pacific, added: “A deep and liquid domestic bond market is a key stepping stone to achieving China’s ambition of making the RMB a truly global currency.

“Partnering with Clearstream places us in an excellent position to help foreign institutional investors tap into opportunities in China’s interbank bond market.”