HSBC Markets and Securities Services has been appointed custodian for a new onshore mutual fund issued by E Fund Management, marking the bank’s first custody mandate of this kind in mainland China. The information was published by HSBC Corporate and Institutional Banking in a LinkedIn post.
According to HSBC, the fund is also E Fund’s first onshore mutual fund to use a foreign custodian bank. E Fund is described by HSBC as a leading mutual fund manager in the Chinese market. The appointment places HSBC inside a domestic fund structure that has historically been handled almost exclusively by local banks.
Growing market
HSBC cites figures from the Asset Management Association of China showing that the mainland mutual fund market reached RMB 37.02 trillion (US$ 5.3 trillion) by the end of November 2025. In comments included in the post, Ivy Zhang, co-head of Markets and Securities Services at HSBC China, points to China as the world’s second-largest asset and wealth management market, with continued expansion expected.
