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HKEX expands cash market trading

The Hong Kong Exchanges & Clearing is allowing cash market traders to use multiple banks to settle transactions to help diversify risks, and it may also mitigate the dangers posed by any escalation in sanctions by Washington and Beijing. Goldman Sachs Group and Citigroup are among the only eight general providers available for the cash market due to high capital requirements. By using multiple banks to settle transactions, the privacy of the funds can be protected and their trades can be cleared with different banks. This will also give more bargaining power to asset managers in choosing a provider with better services and fees. This will also help traders grappling with US sanctions that have been imposed on Chinese firms. Chinese funds can also tap a non-US counterpart in case Beijing makes counterattacks with its own sanctions.

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