The Gateway to Algorithmic and Automated Trading

CFETS and HKEX: Bond Connect launches

First Published 3rd July 2017

Bond Connect programme enables Foreign investors to buy and sell Chinese bonds.

C K Chow, HKEX

C K Chow, HKEX

Hong Kong Exchanges and Clearing (HKEX) has announced the launch of Bond Connect, a mutual bond market access programme between Hong Kong SAR and Mainland China with Northbound trading link initially and Southbound trading link to be added later.

About 20 large onshore institutions, including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communication, have already submitted applications to become Bond Connect participating dealers to provide quotation to the first batch of offshore participants, a group comprised of over 130 institutions, through the trading system of China Foreign Exchange Trade System (CFETS).

"Bond Connect is a major breakthrough in the development of the China bond market, which is the world's third largest," said HKEX Chairman C K Chow. "International investors will be able to use our link to trade directly with eligible dealers on the Mainland through platforms they have been using for other trading."

"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 FIC (fixed income and currency)," said HKEX Chief Executive Charles Li. "Even more importantly, the programme is a great example of the value that Hong Kong can bring to China, as well as the benefits we can enjoy when we connect China and the international community."