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Southbound Bond Connect Officially Launched

30 September 2021

Highlights of the Month

  • The Southbound under mutual bond market access between Mainland China and Hong Kong ("Southbound") was officially launched on 24 September 2021. Southbound provides a convenient channel for Mainland institutional investors to invest in Hong Kong and the global bond market by strengthening the cooperation of the financial infrastructure services institutions in the bond markets of the two jurisdictions. On the first trading day of Southbound, more than 40 Mainland institutional investors and 11 Hong Kong market makers completed over 150 transactions amounting to a total of around RMB 4 billion, covering the major bond types in the Hong Kong market.
  • MarketAxess joined Bond Connect as the latest overseas electronic trading platform for Northbound trading on 27 September, providing international investors an additional gateway to access the China Interbank Bond Market.
  • BCCL launched CNYPlus, a web-based FX system, on 13 September. It represents our latest innovation and reflects our sustained efforts to enhance Bond Connect’s FX service offering. In the first phase of its developments, CNYPlus is targeted for Hong Kong FX settlement banks in rendering Bond Connect investors with currency conversion and FX risk management services.
  • Being one of the key members to ICMA-NAFMII’s latest publication of “Investing in China’s Interbank Bond Market Handbook”, BCCL was invited to join the launch event “The opening-up of China’s bond market’ on 24 September. We delved into the access channels to invest in China’s Interbank Bond Market and unveiled how Bond Connect ascends to become the go-to-access scheme among international investors.
  • BCCL teamed up with S&P to navigate around the onshore credit space in our co-hosted virtual conference “Demystifying China Credits”. Together with experts from S&P, AllianceBernstein, CCB, China Three Gorges Corporation and CICC, BCCL shared the latest development of Bond Connect, opportunities in primary market access, and discussed the development and prospects of China credit and green bonds.

Northbound Bond Connect

Investors






Trading






Primary Market

PMIP disclosed the pre- and post-issuance information of 120 primary bonds including PFBs, NCDs, MTNs, financial bonds, enterprises bonds, tier-2 capital bonds, ABSs and financial commercial papers.