HSBC China has become the first foreign bank to provide custodian services for a cross-border fund product that can help mainland clients invest in foreign markets, the lender said.

Despite the recent crackdown on illegal cross-border trading, analysts believed that the move was a sign that Beijing would continue to allow mainland investors to put their money into overseas markets via legal channels.

The China unit of HSBC Holdings, the largest lender in Hong Kong and Europe, said on its WeChat account on Wednesday that it would provide custody, settlement and investment supervision for a mainland fund company’s product issued under the qualified domestic limited partnership (QDLP) programme. It did not identify the company.

China’s capital controls mean that mainland businesses and individuals are not technically allowed to deposit their money in offshore bank accounts or invest directly in equities and bonds abroad.

However, mainland investors can opt for investment schemes such as QDLP, under a quota system, which allows institutions to raise capital from mainland investors before converting their funds into foreign currencies to buy overseas-listed bonds and equities.

QDLP would continue to be an important mechanism for China to open up its capital market to the world, said Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers.

“HSBC China’s involvement in the scheme is an indication that Beijing will continue to encourage mainland investors to invest in overseas markets as long as it is through the proper channels such as the Stock Connect schemes or the QDLP,” he said.