HSBC has been appointed trustee and designated margin depository bank for the SSIF DCE Iron Ore Futures Exchange Traded Fund, the first iron ore futures ETF in Hong Kong. It is launched by Shanxi Securities International Asset Management Limited, a wholly owned subsidiary of Shanxi Securities International Financial Holdings Limited, one of the first securities companies from mainland China that was set up as a wholly owned subsidiary in Hong Kong.
The ETF is a milestone for the Chinese futures market, allowing foreign investors to trade in Dalian Commodities Exchange (DCE) iron ore futures contracts in USD margin for the first time. Settlement accounts in both RMB and USD facilitate effective trading, with HSBC China the designated margin depository bank. This allows SSIAM, as manager, to transfer funds into onshore brokers’ margin accounts through an online remittance system.