Citi establishes clearing and settlement service for Beijing Stock Exchange

SHANGHAI (Reuters) - Citigroup Inc said on Friday it has established clearing and settlement services for the new Beijing Stock Exchange and the city's New Third Board, in order to facilitate foreign investment.

The move enables Citi to support Qualified Foreign Institutional Investors (QFII) to trade in the two equity markets, Citi said in a statement. The QFII scheme allows overseas investors to access China's onshore markets.

"Our ability now to support settlement and clearing activity for the launch of the Beijing Stock Exchange reiterates our support and confidence in the China market," said Christine Lam, Chief Executive Officer of Citi China.

China launched the Beijing Stock Exchange in late 2021 to help small and medium-sized enterprises (SMEs) raise funds, underpinning President Xi Jinping's "common prosperity" policy aimed at reducing wealth gaps in the country.

Citi China established the clearing and settlement route with China Securities Depository and Clearing Corp. Ltd. (CSDCC), according to the statement.

(Reporting by Jason Xue and Andrew Galbraith; Editing by Kim Coghill)

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