Flash Report
Bond Connect Celebrates 5th Anniversary, with the Announcement of Swap Connect and the Launch of ePrime Northbound Primary Service
17 August 2022
Highlights of the Month
- Monthly trading volume of Northbound Bond Connect accumulated to RMB 691.4 billion in July, and monthly average daily volume reached RMB 32.9 billion. Majority of trading activities center around China government bonds (41%) and policy financial bonds (41%). Most activities surround 0-1yr (46%) & 7-10yr (34%) maturities.
- Bond Connect Anniversary Summit 2022 & Swap Connect Launch was held on July 4 to mark the fifth anniversary of the landmark Bond Connect programme and celebrate the announcement of Swap Connect, a new mutual market access programme that will provide trading and clearing services for overseas investors accessing China onshore interest rate swap market.
- On July 4, Bond Connect Company Limited (BCCL) and China Foreign Exchange Trade System (CFETS) jointly launched the Northbound primary service for China Interbank Bond Market (CIBM). The service allows offshore investors to participate in the Northbound subscription of CIBM new issuances. By the end of July, the service has attracted 43 pioneer offshore investors. Among them, 25 offshore investors received allocations from 47 deals, bringing the transaction volume to RMB 1.37 billion in China government bonds, policy financial bonds, green financial bonds, and super short-term commercial papers etc.
- ePrime supported China Development Bank Hong Kong Branch’s successful dual-tranche issuance (offshore RMB and HKD) on July 12. The transaction was run on ePrime throughout the bookbuilding, pricing and allocation process via its web interface, by major participants such as Bank of China (Hong Kong) Limited as JGC, JBR, JLM and B&D bank, as well as China Construction Bank (Asia) Corporation Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Mizuho Securities Asia Ltd, Shanghai Pudong Development Bank Co. Ltd. Hong Kong Branch as JGC, JBR & JLM.
- In July, PMIP disclosed the pre- and post-issuance information of 105 primary bonds including PFBs, NCDs, financial bonds and perpetual bonds.
