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Clearstream to launch Bond Connect service

First Published 30th October 2017

Clearstream partners with Citi to offer international market participants access to China's fixed-income market via Bond Connect

The international central securities depository (ICSD) Clearstream is about to launch its service to support the cross-border bond trading and settlement scheme 'Bond Connect', linking the China Interbank Bond Market (CIBM) with the world. Starting from 20 November 2017, Clearstream customers will be able to access Chinese bonds traded in CIBM via Hong Kong.

The new service replicates Clearstream's Stock Connect offering for China A-shares where Citi acts as Clearstream's local sub-custodian. Clearstream customers already have direct access to the China onshore bond market via Clearstream's China Bond Link. The new link complements this direct access link, which was launched last autumn.

Bond Connect is a new mutual access scheme that allows institutional investors from Mainland China and overseas to trade in each other's bond markets through a connection between related Mainland and Hong Kong financial infrastructure institutions. The first phase of the scheme - Northbound trading - went live on 3 July 2017, facilitating foreign institutional investors' access to China via the Hong Kong market.