On July 4, many participants said at the "Bond Connect Annual Forum 2023" that "Bond Connect" has performed well since its launch six years ago, and has become the main channel for overseas investors to allocate mainland bonds cross-border. China's onshore bond market continues to increase its appeal to investors. Gao Fei, Deputy Director of the Financial Market Department of the People's Bank of China, stated that he is actively studying other measures to promote the opening up of the bond market to the outside world, including exploring the establishment of a custodian bank model for overseas investors to invest in the domestic bond market, and improving risk hedging and liquidity management tools for overseas investors. "Bond Connect" has performed well for six years since its launch. "In the past six years, Bond Connect has lived up to expectations." Zhang Yi, president of China Foreign Exchange Trading Center and chairman of Bond Connect Co., Ltd., said that with the changes in the domestic and international economic situation, the business of "Bond Connect" may fluctuate, but the upward momentum is obvious to all. Zhang Yi introduced that "Bond Connect" had an average daily transaction of 2.2 billion yuan in 2017 and 38.9 billion yuan this year; In 2017, more than 70% of the transactions of "Bond Connect" were bonds with maturities of less than three years, and this year, more than 50% of the transactions of medium - and long-term bonds with maturities of more than three years accounted for; In 2017, 178 overseas institutions participated in "Bond Connect", and this year, more than 800 overseas institutions participated in "Bond Connect"; In 2017, "Bond Connect" opened the bond Secondary market for trading. This year, Primary market services and foreign exchange trading services were carried out in an orderly manner, and the derivatives transaction "Swap Connect" has also been launched. "Bond Connect has performed well since its launch six years ago, and the attraction of China's onshore bond market to investors continues to increase," said Ou Guansheng, CEO of the Hong Kong Stock Exchange Group. Paul Chan Mo-po, Financial Secretary of the Hong Kong SAR Government, said that the Bond Connect has been deepening and expanding since its launch six years ago. The total amount of mainland bonds held by overseas institutions through the Bond Connect has exceeded 3.1 trillion yuan. The transaction volume of the "North Link" has risen from 31 billion yuan in the first month of its opening in 2017 to more than 970 billion yuan in May this year. Liang Fengyi, Chief Executive Officer of the Hong Kong Securities Regulatory Commission, said that since the launch of the "Bond Connect" in 2017, the scale of mainland bonds held by international investors has tripled to more than 3 trillion yuan. Promoting the opening of the bond market "Bond Connect" has witnessed the rapid growth of China's bond market. We are actively researching other measures to promote the opening up of the bond market to the outside world, "Gao Fei said, including further improving the level of institutional unified opening up to the outside world, and exploring the establishment of a custodian bank model for overseas investors to invest in the domestic bond market; Improve risk hedging and liquidity management tools for overseas investors, and actively study repurchase trading issues that foreign investors are more concerned about, in addition to the already launched "Swap Connect"; Exploring the promotion of RMB bonds held by foreign investors to become widely accepted and qualified collateral offshore, and piloting foreign investors to participate in standard bond forward business through direct entry channels; Optimize the operating mechanism of the "southbound connection" and orderly promote cross-border cooperation between domestic and international infrastructure. Rong Yihua, Deputy Director of the Financial Market Management Department of the Shanghai Headquarters of the People's Bank of China, said that in the next step, the Shanghai Headquarters of the People's Bank of China will continue to implement
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
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