The People's Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA) made a joint announcement today (May 16) on their approval for the relevant Mainland and Hong Kong financial infrastructure institutions to collaborate in establishing mutual bond market access between Hong Kong and the Mainland (Bond Connect). The Hong Kong Special Administrative Region Government welcomes the joint announcement by the PBoC and the HKMA.

     The Financial Secretary, Mr Paul Chan, said, "Bond Connect marks an important milestone in the further development of mutual capital market access between the Mainland and Hong Kong. It will enable eligible overseas investors to access, for the first time, the Mainland interbank bond market through infrastructural connection established between the Mainland and overseas bond markets. I am pleased that Hong Kong, as China's international financial centre, continues to play a unique and significant role in the opening up of the Mainland's financial markets to the rest of the world. I am grateful to the Central People's Government and relevant authorities for their support of the launch of Bond Connect.

     "Bond Connect will facilitate investors' participation in the bond markets, improve the connectivity between market infrastructures and promote the healthy development of the bond markets, thereby enhancing Hong Kong's status as an international financial centre and the global offshore Renminbi business hub."

     Bond Connect will be implemented in phases. Northbound trading will be launched first in the initial phase, allowing Hong Kong and other overseas investors to invest in the China Interbank Bond Market through mutual access between the financial infrastructure institutions in Hong Kong and the Mainland in respect of trading, custody, settlement, etc. Southbound trading will be explored in due course, allowing Mainland investors to invest in Hong Kong's bond market through mutual access between the financial infrastructure institutions of the two places.

     According to the joint announcement, Bond Connect will be formally launched after relevant rules and system development have been finalised, market participants' practical needs suitably addressed, relevant regulatory approvals granted and all other necessary preparations completed.

Ends/Tuesday, May 16, 2017
Issued at HKT 18:11

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