Bond connect seen to help foreign investors access China debt market

The newly-launched China-Hong Kong Bond Connect is expected to facilitate the internationalisation of China’s fixed income market with more foreign institutional investors using it to access Chinese debt, according to asset managers.

The bond connect, which went live on July 3, allows foreign investors to invest in China’s onshore market via Hong Kong in the so-called northbound trading.

Charles Li, chief executive of the Hong Kong Stock Exchange (HKEX), says in a statement that “the bond connect will give Hong Kong a bigger role in fixed income, expand our mutual market programme from stocks into a second asset class and give us a good foundation for further development in fixed income and currency.”

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