Bond Connect witnessed another milestone achievement in September, hitting the 1300 mark for international client adoption. Trading activities also continued to show strong momentum with over 2600 trades executed in the month, amounting to approximately RMB 300 billion.
Investor Adoption
By the end of September, a total of 1311 institutional investors have enrolled in the Bond Connect scheme. Italy has been added this month as the 31st jurisdiction that Bond Connect has covered globally. The scheme has onboarded 62 out of the top 100 global asset managers, with more in the pipeline.
Trading
Bond Connect had a total of 2645 trades executed in September, amounting to RMB 296.3 billion in terms of trading volume. The average daily turnover was RMB 14.8 billion1. Global investors were net buyers of Chinese bonds for RMB 15.5 billion. Policy financial bonds, Chinese government bonds and NCDs were still the focus of investors with turnover of RMB 168.1 billion, RMB 83.9 billion, and RMB 33.4 billion respectively, accounting for 56.7%, 28.3%, and 11.3% of monthly trading volume. In terms of tenor, bonds with maturity from 7 to 10 years were the most popular, taking up 50.7% of the total activities.
Primary Market
BCCL’s Primary Market Information Platform disclosed the pre- and post-issuance information of145 primary bonds in September, including PFBs, NCDs, ABSs, financial bonds and financial commercial papers.
Scheme Enhancements
Launched on September 25th, global investors can now access real-time indicative prices from all Bond Connect dealers via the Bloomberg terminal, increasing market transparency and improving price discovery.
Ends
1 Excluding the special trading day of 29 September 2019 (Sun), which is a trading day for China but holiday for global investors.
