Euroclear Bank, the Brussels based International Central Securities Depositary (ICSD) and the Chinese financial market infrastructure Shanghai Clearing House have worked together to create a new asset class in China, called Yulan bonds.

Yulan bonds will be issued through Shanghai Clearing House with international investors able to benefit from real time multi-currency DVP settlement with any counterparty within Euroclear Bank’s network. Chinese issuers will now be able to access a deeper liquidity pool in a cost efficient way. 

The Yulan bond initiative builds upon an already longstanding relationship between Euroclear and the Shanghai Clearing House, dating back to 2009, when both signed a Memorandum of Understanding (MoU). Under the MoU, Shanghai Clearing House and Euroclear agreed to explore business models to further improve and facilitate investment flows between China and the international markets.

Euroclear Bank provides settlement and related securities services for cross-border transactions involving domestic and international bonds, equities, derivatives and investment funds. Serving major financial institutions located in more than 90 countries.