The sixth anniversary forum of Bond Connect was held simultaneously in Hong Kong and Shanghai on the 4th. Participants analyzed and discussed new opportunities in the process of Internationalization of the renminbi, a new chapter in the connectivity mechanism, and new trends in cross-border investment and financing. In July 2017, the bond opening to the north was successfully implemented, and the mainland and Hong Kong bond market connectivity cooperation was launched for trial operation. In September 2021, the southward opening was also successfully implemented, realizing the two-way opening of Bond Connect. At present, the average daily trading volume of Bond Connect has reached 38.9 billion yuan, and more than 800 overseas institutions have participated in Bond Connect. Bond Connect Primary market services and foreign exchange trading services have been carried out in an orderly manner, and the derivatives transaction "swap link" has also been launched. Zhang Yi, President of China Foreign Exchange Trading Center, introduced at the forum that the open thinking of Bond Connect business, including respect for international practices, attention to market demand and timely feedback, and effective risk management, has made Bond Connect a benchmark business for China's financial market opening up. The "Swap Connect" launched this year provides international investors with accurate and effective RMB Interest rate risk hedging tools, which has become another important milestone in the deepening of financial market connectivity between the mainland and Hong Kong. Ou Guansheng, Chief Executive Officer of the Hong Kong Stock Exchange Group, said that Bond Connect has performed well in the past six years, and its performance has reached a new high in the past two years. In the future, it can bring more capital flows by improving liquidity, and China's onshore bond market is increasingly attractive to international investors. He believes that as an international financial center, Hong Kong can provide more trading options, fundraising platforms, and risk management. Since the launch of Bond Connect six years ago, the total amount of mainland bonds held by overseas institutions through Bond Connect has exceeded 3.1 trillion yuan. Paul Chan Mo-po, Financial Secretary of the Hong Kong SAR Government, believes that this reflects the interest of international investors in investment opportunities in the mainland bond market, and also shows the unique role of Hong Kong in connecting the mainland and international bond market investors. At the same time, the content of the connectivity mechanism is constantly enriched, which also helps the orderly opening of the national financial market and the steady and prudent progress of Internationalization of the renminbi. Gao Fei, Deputy Director of the Financial Markets Department of the People's Bank of China, stated that he will continue to steadily promote the reform, opening up, and high-quality development of the financial market, continue to deepen practical cooperation with Hong Kong, and unwaveringly support the construction of the Hong Kong International Financial Center. Bond Connect still has room for further improvement. Eddie Yue, President of the Hong Kong Monetary Authority, said at the meeting that in the next stage, Hong Kong would optimize the operation arrangement of the "southbound link", for example, through repurchase, investors could effectively use their bonds for liquidity management to promote market vitality. Liang Fengyi, Chief Executive Officer of the Hong Kong Securities Regulatory Commission, said that the achievements of the Bond Connect in recent years reflected that the orderly opening and expansion and optimization of the Bond Connect were effective. In the future, the Hong Kong Securities Regulatory Commission will continue to cooperate with the mainland and the industry to study other expansion and optimization measures of the "South Link". (New News Agency)
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：XinhuaNet
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