Bond Connect Company Limited (BCCL) today (Tuesday) hosted the Bond Connect Anniversary Summit 2024 at HKEX Connect Hall to celebrate the 7th anniversary of Bond Connect, a mutual bond market access programme between the Mainland China and Hong Kong.
The Summit featured speeches from distinguished speakers and in-depth panel discussions on topics such as the global macroeconomic outlook, the continued opening-up of China's financial markets, and investment opportunities in China's bond market.
Representatives from the Mainland and Hong Kong regulatory authorities, financial market infrastructure and financial institutions also joined the Summit.
At the Summit, the People’s Bank of China announced that it will support offshore investors to use onshore bonds held under Northbound Bond Connect as margin collateral for Swap Connect. This will broaden the application of RMB bonds as offshore eligible collateral, facilitating greater utilization of onshore RMB bonds held by foreign institutions and reducing the cost to participate in Swap Connect.
Paul Chan, Financial Secretary of the Hong Kong Special Administrative Region Government, said: “Seven years ago, the launch of Bond Connect opened a convenient gateway for global investors to access the Mainland’s bond market. Building on the successful implementation of Stock Connect, it introduced new products to and expanded the channels of the mutual market access mechanism. Bond Connect has become an important bridge connecting the Mainland and international bond markets. Its Northbound trading volume has been continuously increasing, from an average daily trade value of RMB 1.5 billion in the first month of its launch to approximately RMB 46.6 billion in May this year, growing more than 30 times. It has become a major channel for overseas investors to allocate Mainland bond assets.”
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