Bond Connect Company Limited (BCCL) welcomed the first Bond Connect transaction completed by Banco BOCOM BBM S.A. (BOCOM BBM) on 17th November 2020. BOCOM BBM is the first Latin American institutional investor to access the China Bond Market through Bond Connect.

 

This first LATAM transaction, came about following close collaboration between BCCL, BOCOM BBM, and Bank of Communications Trustee Limited (BOCOM Trustee) after extensive groundwork to enable seamless application, trading and settlement for the Brazilian investor.  

 

“The China bond market has established itself as a leading market for global investors seeking yields against the backdrop of the Covid-19 pandemic,” commented Julien Martin, General Manager of BCCL. “Throughout recent months we have observed increased interest in China as a market from Latin American and Caribbean institutional investors and we believe this trend will continue.” 

 

Stephen Yeung Waiping, CEO of BOCOM Trustee, commented, “We are very delighted that BOCOM Trustee, as one of the active Bond Connect custodians, participated in the first Bond Connect deal in Latin America done by BOCOM BBM. Bond Connect channel allows overseas investors to gain easier access to the enormous bond market of the Mainland China, and with the successful promotion by BCCL, it is now widely accepted by the global investors. BOCOM Trustee will continue to play an active role in Bond Connect development and provide efficient and comprehensive custody services to our institutional investors.”

 

“BOCOM BBM is honored to become the pioneer Latin American Institutional Investor accessing China Bond Market through Bond Connect. As BOCOM’s first joint venture outside China, we are committed to contribute to the integration of Chinese and Brazilian Markets. We have a long tradition of offering the best solutions and financial services to our clients and we are confident that Bond Connect is a first step in creating a wide portfolio of top tier Chinese Products to them. With the rise of China as an economic and financial major power in a world of zero or negative interest rates seems the new normal for developed economies, we observe investors increasingly interested in diversifying their portfolio allocation and RMB Chinese Bonds today offer a unique combination of higher yield with very high credit rating. Related products will be a major success in Brazil,” Alexandre Lowenkron, Managing Director of BOCOM BBM commented.

 

Bond Connect has attracted 2474 investors across 34 jurisdictions, to date.

 

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