Bond Connect Company Limited (BCCL) today (Tuesday) hosted the Bond Connect Anniversary Summit 2024 at HKEX Connect Hall to celebrate the 7th anniversary of Bond Connect, a mutual bond market access programme between the Mainland China and Hong Kong.

The Summit featured speeches from distinguished speakers and in-depth panel discussions on topics such as the global macroeconomic outlook, the continued opening-up of China's financial markets, and investment opportunities in China's bond market.

Representatives from the Mainland and Hong Kong regulatory authorities, financial market infrastructure and financial institutions also joined the Summit.

At the Summit, the People’s Bank of China announced that it will support offshore investors to use onshore bonds held under Northbound Bond Connect as margin collateral for Swap Connect. This will broaden the application of RMB bonds as offshore eligible collateral, facilitating greater utilization of onshore RMB bonds held by foreign institutions and reducing the cost to participate in Swap Connect.

Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region Government, said: “Seven years ago, the launch of Bond Connect opened a convenient gateway for global investors to access the Mainland’s bond market. Building on the successful implementation of Stock Connect, it introduced new products to and expanded the channels of the mutual market access mechanism.  Bond Connect has become an important bridge connecting the Mainland and international bond markets. Its Northbound trading volume has been continuously increasing, from an average daily trade value of RMB 1.5 billion in the first month of its launch to approximately RMB 46.6 billion in May this year, growing more than 30 times. It has become a major channel for overseas investors to allocate Mainland bond assets.”

Jiang Huifen, Deputy Director-General of the Financial Market Department of the People’s Bank of China said: “Consolidating Hong Kong's status as a leading international financial center is a priority of the People’s Bank of China and a key task outlined in the report of the 20th National Congress of the Communist Party of China (CPC) and the Central Economic Work Conference. In recent years, the increasing connectivity between the Mainland and Hong Kong has injected vitality into the development of China's financial opening-up. Looking ahead, the People’s Bank of China will continue to strengthen pragmatic collaboration with Hong Kong in accordance with the plans of the CPC Central Committee and the State Council, support Hong Kong's development as an international financial center with greater determination, and push for high-quality development of China's financial market and system-based opening-up, with an aim to expedite China's unique development into a financial powerhouse.”

Zhang Yi, President of China Foreign Exchange Trade System (National Interbank Funding Center) and Chairperson of BCCL said: “The mutual market access scheme has pioneered the development of financial markets under multiple constraints, stood the test of the market with impressive market performance, and received welcome and recognition from institutional investors.”

Bonnie Y Chan, HKEX Chief Executive Officer, said: “China’s onshore bond market is the world’s second largest but remains significantly under-invested by global investors. We look forward to working with all our partners to enhance and expand the Connect programmes, including Bond Connect and Swap Connect, to drive progress for financial markets in Hong Kong and Mainland China for the benefit of all.”

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said: “Since its launch seven years ago, Bond Connect has established itself as a key channel linking the Mainland and international bond markets. The Hong Kong Monetary Authority has been working closely with financial regulatory authorities and infrastructure institutions of Hong Kong and the Mainland, to continuously enhance the various Connect Schemes and market ecosystem, providing investors with more tools for liquidity and risk management. We are glad to have reached consensus with the People’s Bank of China to support investors to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under Bond Connect as margin collateral for Swap Connect transactions. We will continue to strengthen the collaboration with a view to deepening the two-way connection between Hong Kong’s and the Mainland's financial markets.”


Eddie Yue, Chief Executive of the Hong Kong Monetary Authority