Euroclear has announced that it is supporting Crédit Agricole Corporate and Investment Bank ( Crédit Agricole CIB ) and the Bank of China ( BOC ) in the use of offshore Chinese government bonds as eligible collateral under triparty arrangements for uncleared margin requirements, according to a statement issued on February 2.

This development reflects increasing market recognition of Chinese government bonds as high-quality collateral and underscores Euroclear’s role in enabling the efficient mobilisation of Chinese assets within the global markets. 

Onshore RMB bonds now represent a pool of high-quality collateral totalling approximately €5 trillion, with ongoing market and regulatory initiatives further supporting their use in cross-border financing activities.

Wendy Zhu, head of the Global Markets Division, Crédit Agricole CIB China, says, “As a forerunner in facilitating the internationalisation of Chinese sovereign bonds, Crédit Agricole CIB is among the first to embrace multi-currency Chinese sovereign bonds, including CNH-denominated government bonds, as eligible collateral for derivatives margin. This step helps establish a practical model for expanding the international application of Chinese bonds.”

Philippe Laurensy, CEO of Asia Pacific, Euroclear says, “Asia is a cornerstone of Euroclear’s global strategy, where we are working to deepen collaborations across the region, enhancing interoperability leveraging our neutrality to partner with local players and initiatives. We have been supporting the use of offshore Chinese government bonds as collateral for many years and are very pleased to see wider adoption of this asset class as eligible collateral by the industry. It demonstrates our commitment to supporting market participants as the Chinese market continues to open and to facilitating efficient, secure cross-border collateral flows.”