DST Global Solutions Promotes Asset Serving Offering As China Expands RMB Market

Tom Burroughes

18 June 2012

DST Global Solutions, the investment technology firm, is using its HiPortfolio asset servicing offering to help clients in China prepare for greater international use of the Chinese renminbi.

Last December, China launched a pilot scheme to accelerate global use of the currency. The scheme involves an initial investment quota of RMB20 billion allocated to nine Chinese asset managers and 12 securities brokerages. In April 2012, China expanded the programme scheme by increasing the investment quota to RMB70 billion.

China’s move can be seen as part of a move by the Asian powerhouse to develop the renminbi into a reserve currency. Its exchange rate currently fluctuates inside a narrow band around a fixed rate set with reference to a basket of major global currencies such as the dollar and euro. A number of financial institutions, such as HSBC, have made forays into this market; in early June, HSBC China won approval to be a market maker for the direct trading of the renminbi and Japanese yen on the Chinese interbank foreign exchange market.

DST Global Solutions, which has been operating in China since 2003, said it serves some of the “largest and most respected names in the Chinese fund management industry”.

“With the launch of the RQFII scheme, our clients in the fund management industry require a solution that is designed to work in global markets as well as help them meet the requirements of the Chinese fund management industry,” said Geoff Harries, global head of asset servicing at DST Global Solutions.

HiPortfolio is an asset servicing and fund accounting solution delivering trade and investment cycle functionality in an integrated environment.