Introduction
In a newest attempt to further open up their capital markets, Hong Kong Exchanges and Clearing Limited (“HKEX”) collaborated with China Foreign Exchange Trade System (“CFETS”) on a joint venture company Bond Connect Company Limited (“BCCL”) to support Bond Connect.
Bond Connect
Bond Connect is a new mutual market access scheme enabling investors from Mainland China and offshore to trade mutually in each other’s bond markets through an infrastructure linkage in Hong Kong. This mimics a structure alike the stock-trading programmes between Shanghai, Hong Kong and Shenzhen’s stock exchanges in the past two years. BCCL is 60% owned by CFETS and 40% owned by HKEX.
Initial trading begins Northbound, allowing international investors direct access to the China Interbank Bond Market via the CFETS system. The launch of Southbound trading will be explored at a later stage.
Please contact our Eric Lui or Rodney Teoh for any enquiries or further information.