A summit in Hong Kong on Tuesday celebrated the 7th anniversary of Bond Connect, which connects the mainland and Hong Kong bond markets. Participants at the Bond Connect Company Limited (BCCL) summit highlighted the improved international recognition of China’s bond market.
Launched in 2017, Bond Connect provides overseas investors with easier access to the vast Chinese mainland market. Zhang Yi, Chairperson of BCCL, praised Bond Connect for its role in developing the financial market despite challenges and garnering support from institutional investors.
Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) government, emphasized Bond Connect’s importance as the primary channel for overseas investors to invest in mainland assets. Last year, international investors conducted two-thirds of their transactions in the mainland bond market through Bond Connect, with a total volume exceeding 15 trillion Chinese yuan (US$2.06 trillion).
Looking ahead, Hong Kong aims to leverage its advantages, enhance connectivity, and attract capital and investors from the mainland and globally. Jiang Huifen, Deputy Director-General of the Financial Market Department of the People’s Bank of China, highlighted the growing financial connectivity between the mainland and Hong Kong, supporting China’s financial opening up.
Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), noted the resilience of international investors in investing in RMB assets despite global financial market volatility. The Southbound Bond Connect has been instrumental in driving the development of the offshore RMB bond market in Hong Kong, with the total amount of RMB bonds issued in the city increasing significantly last year.
In conclusion, the collaboration between the People’s Bank of China and Hong Kong will continue to strengthen, supporting Hong Kong’s development as a premier international financial center. The success of Bond Connect in facilitating investments between the mainland and Hong Kong underscores its significance in enhancing financial connectivity and driving market growth.
–BERNAMA-XINHUA