In order to promote the depository service for clients' guarantee fund in securities market, enhance the exchange and communication among commercial banks and other main participants in securities market, and deepen the bank-securities cooperation, Industrial Bank hosted jointly with Shine Software Limited the “Seminar on Innovation of Securities Fund Depository and Settlement” in Boao, Hainan in November 24. Experts form China Securities Regulatory Commission (CSRC) and China Securities Depository and Clearing Corporation Limited, and representatives from more than 60 securities companies attended the seminar. During the seminar, experts had a heated discussion on innovation of securities fund depository and settlement, especially the third party depository service.
Industrial Bank expressed that under the frame of third party depository, the cooperative degree between commercial banks and securities companies would be upgraded to a new level. The cooperative mode would be transited from the original service cooperation to a new height of offering high-quality financial service by creating product jointly and exploiting advantages for mutual benefits together. During the seminar, the innovative idea mode of “multi-bank settlement” and “multi-bank depository + multi-bank fund deposit and withdrawing” brought forward by Industrial Bank blazed a new trail for idea of third party depository.
It was said that Industrial Bank, the host of this seminar, was one of the shareholding commercial banks who had set foot in securities market early in China . The Bank has endeavored to offer professional banking service for securities market all along and occupied a leading position in number of served securities companies, settlement amount of securities fund, and market share of securities fund depository for years. So far, 18 experimental securities companies and most standardized securities companies have become Industrial Bank's clients, in which 7 of the experimental securities companies have signed formal agreement on all-round business cooperation with industrial bank. Compared with traditional depository and settlement business, the collaboration on bank-securities has extended to the a broader area covering fund transaction, investment bank, assets management, business innovation and customer sharing, etc..
For the sake of adapting to the regulatory requirement and deepening the bank-securities cooperation, Industrial Bank has commenced on the research on third party depository solution since 2005 and taken the first to start up the R&D on third party depository in domestic banking industry. Heretofore, the third party depository business of Industrial Bank has achieved substantial progress. The first batch of agreement on (multi-bank) third party depository has been signed with Guotai Junan Securities; cooperation intent on third party depository has been established with more than 30 securities companies; and the third party depository system, which was expected to put into operation at the end of this year, has been tested among over 10 securities companies.