Hong Kong Exchanges and Clearing (0388) Chief Executive Nicolas Aguzin said the number of bond connect products surged 10 times compared with the beginning and the stock exchange will launch more products and services.
At the Bond Connect Anniversary Summit 2021, Aguzin said the Bond Cconnect has exceeded expectations and has become a channel for international investors to enter the world’s second-largest bond market.
As for southbound Bond Connect, he added that the bourse will continue to cooperate with regulators to expand to make it easier for mainland investors to invest in the international bond market.
Aguzin said the Bond Connect will extend trading hours, allowing third-party hedging and the progress of digitalization,
He added that China’s economy has driven global growth, and that continued low global interest rates have increased the attractiveness of the mainland bond market. China’s goal of “carbon neutrality” is also conducive to the development of green bonds, he said.
The role of Hong Kong is becoming more important as Hong Kong has both China and international markets and connectivity and the largest offshore yuan pool.
Zhang Yi, president of China Foreign Exchange Trade System and chairperson of Bond Connect Company, said that as of end May this year, 947 overseas institutions participated in China's inter-bank bond market, and 661 invested through Bond Connect, representing a year-on-year increase of 21 percent, coming from 34 different markets. During the year, the turnover of Bond Connect reached 2.5 trillion yuan, which also increased by 31percent year-on-year.
