One runs a risk combining the words 'custody' and 'nail-biter' in the same headline, but nonetheless global custodian banks are on tenterhooks as they await final details from several Chinese regulators about their role in the new scheme to open A shares to foreign portfolio investors.
Custody executives in Hong Kong say if the rules pile on too many risks, they will not participate. These rules will determine our interest, says James Wong, senior vice president for Hong Kong custody and clearing at HSBC.
Scaring off global custodians would cripple China's plans to modernize its domestic capital markets. Foreign investors have already greeted news of the opening with a shrug.
The new law allowing...