China gives Deutsche Bank, BNP Paribas corporate debt underwriting license

China has issued Deutsche Bank and BNP Paribas "type A" licenses, which allows them to act as a lead underwriter for corporate debt issued by non-financial institutions, said an industry body under the central bank on Tuesday. 

The award of the licenses to the two banks comes as the country seeks to show progress in opening its markets amid an escalating Sino-U.S. trade war. 

At the end of August, six foreign banks sought a "type A" license, according to a notice posted on the National Association of Financial Market Institutional Investors (NAFMII).

The Office of the Financial Committee under China's State Council announced 11 measures to promote the further opening of the financial industry on July 20.

According to Li Bing, head of Greater China at Bloomberg, giving corporate debt underwriting licenses to foreign institutions in China makes market participants more diversified and helps the market to develop healthily.

Source(s): Reuters