US-based Citi has announced that it successfully settled trades of China Asset Management on the Hong Kong Exchanges and Clearing (HKEX) Synapse platform. According to the press release, this was among the first trades executed and settled on the recently launched platform.

Synapse is HKEX’s new integrated settlement acceleration platform developed to complement the existing Northbound Stock Connect post-trade infrastructure, which was launched in 2014. Stock Connect is a landmark mutual market access program that connects the equity markets of Mainland China and Hong Kong, supporting Hong Kong and international investors in accessing the China A Share market. More information about the Synapse platform Since being invited to participate in the Synapse pilot project in 2019, Citi worked closely with HKEX to develop and launch a fully automated API-powered Synapse connectivity solution.

Currently, Citi is one of the first banks in Hong Kong to offer this capability. Moreover, the bank fully aligned its custody platform to offer the complete benefits of Synapse to its clients. HKEX’s representatives stated that the new integrated settlement acceleration platform for Stock Connect aims to enhance operational efficiency and help support the development of a more robust and interconnected market ecosystem. The development of Synapse by HKEX is complementary to the global pressure towards settlement cycle reduction, considering that recently North America announced its preparations to move to a T+1 settlement cycle around May 2024. The Synapse platform offers international and local investors improved transparency and visibility over transaction statuses, an important element given the time zone differences that affect operating and processing hours.

According to Citi’s officials, the API solution that the bank designed for Stock Connect is compatible with Synapse and aims to address existing operational complexities. Citi’s recent developments As a banking partner for financial institutions and enterprises, Citi operates in approximately 160 countries and jurisdictions, providing corporations, governments, investors, and individuals with a broad range of financial products and services. Recently, Citi agreed to sell its onshore consumer wealth portfolio in China to the HSBC Bank China.

As of the announcement, Citi sold its clients, assets under management (AUM), and deposits included in the portfolio. Additionally, the bank is set to extend offers to in-scope employees supporting Citi’s local consumer wealth business in the region. Moreover, at the beginning of September 2023, Citi launched a suite of four payment solutions addressed to its financial institution's clients. The new set of functionalities was introduced as part of Citi’s Treasury and Trade Solutions (TTS) services and is designed to improve the client experience that financial institutions extend.

Reportedly, the solutions can be used with minimal or no implementation work or technology build. .