China launched its long-awaited Bond Connect programme on Monday, offering international investors access to its $10 trillion debt market via Hong Kong.
During the initial trial phase, only northbound flows from Hong Kong into China will be allowed. No date has yet been set for southbound flows. The programme will replicate two previous ‘Stock Connect’ initiatives, linking Hong Kong with bourses in Shenzhen and Shanghai. Hong Kong’s legal system is trusted by international investors, and the Special Administrative Region has no capital controls, unlike the mainland.