Australian securities can be held in Chinese currency

SYDNEY - The Australian Securities Exchange (ASX) has launched a new service which allows Australians to hold securities in Chinese currency renminbi.

Developed in cooperation with the Bank of China, the service has been available since August 1 through the ASX's subsidiary Austraclear, the entity responsible for the wholesale debt market's securities depository and settlement.

Austraclear and ASX Collateral senior manager Blair Harrison told Xinhua on Friday that the renminbi was the first foreign currency in which Australian securities could be held in.

"We haven't had any take up so far but interested parties have to be domiciled in Australia," Harrison told Xinhua.

"For those who are not in Australia, they would have to hold their bond through a custodian like JP Morgan."

Sydney already houses southern hemisphere's first?yuan clearing house, with the latest initiative adding to the New South Wale's (NSW) state government's push for a deepening of the financial relationship.

"I led the push for Sydney to become an offshore settlement hub for the Chinese currency and support this latest milestone that encourages Australian firms to do business with China," NSW Premier Mike Baird said in a statement.

"We have a goal for 20 percent of the state's goods trade with our largest trading partner to be settled in?yuan by 2020 and this new service will assist in reaching that target."

Austraclear has supported this initiative by providing real-time straight-through processing links to China and other markets for?renminbi cash settlement.

The new service will now see a full end-to-end support of yuan-denominated securities and cash.