Themis Qi

Hong Kong is talking with mainland financial regulators about the expansion of a bond trading channel linked with mainland investors, Hong Kong Monetary Authority chief executive Eddie Yu Wai-man said yesterday.

The plan was revealed at a summit celebrating the 10th anniversary of the Connect schemes - trading channels between Hong Kong and mainland markets - with government officials and market heavyweights in attendance.

Yue said the regulators of both markets are discussing allowing more onshore investors to trade using the Southbound Bond Connect, such as non-bank financial institutions like brokers and insurers.

Acting Chief Executive Eric Chan Kwok-ki noted that the cross-border trading mechanism will be further optimized.

Financial Secretary Paul Chan Mo-po said Hong Kong will remain a critical intersection between mainland and global financial markets with the help of the schemes, gathering more funds and talent.

China Securities Regulatory Commission chairman Wu Qing said in a video that China will roll out more practical measures as the country aims to further open up its capital market.

CSRC vice chairman Li Ming said regulators will jointly maintain the health of both the mainland and Hong Kong markets.

Hong Kong Exchanges and Clearing (0388) chairman Carlson Tong Ka-shing said the Connect can keep changing and expanding, but it is necessary to reach a consensus with mainland regulators.

HKEX chief executive Bonnie Chan Yi-ting noted that the bourse is currently preparing a technical and system enhancement for the inclusion of the yuan counter into the southbound channels, without disclosing the progress of other projects.

Shanghai Stock Exchange president Cai Jianchun pointed out that the contribution of foreign investors in trading volume has climbed to 14 percent of the Shanghai bourse.

Shenzhen Stock Exchange President Li Jizun said many positive changes are happening to A shares this year, reflecting the effect of capital market reform measures introduced by the central government.

The summit celebrates 10 years of Connect schemes.

Bond trading link may expand