Linklaters advises on Bond Connect

Linklaters advised the Bond Connect Company and the Hong Kong Exchanges and Clearing Limited (HKEx) on the establishment of Bond Connect between Mainland China and Hong Kong. The Bond Connect programme marks yet another major milestone in mutual market access between Mainland China and the outside world following the hugely successful and innovative China-Hong Kong Stock Connect project which allows much greater access to the equities market.

Bond Connect will, through linking the trading and settlement market infrastructures in Mainland China and Hong Kong, enable Hong Kong and overseas investors to trade debt securities in the Mainland Chinese onshore bond market (so called Northbound Link) and Mainland investors to trade debt securities in overseas bond markets through a Southbound link at a later stage. From Stock Connect to Bond Connect, this is a significant first in the market satisfying foreign investor appetite in the equity and now debt market.

This high-profile programme demonstrates Linklaters’ experience in legal and financial innovation which at the same time required specialist input from Linklaters’ capital markets, financial regulatory and corporate experts globally. The Linklaters team was led by Hong Kong partners Chin-Chong Liew and Sumit Indwar with support from counsel Karen Lam, Christopher Yip and Simon Zhang and a number of associates throughout the firm’s regional network.

Linklaters partner Chin-Chong Liew said:

"Bond Connect is the first of its kind and will enhance Hong Kong’s role as the gateway for overseas investors to enter the Mainland market. As a result, capital inflows are expected to increase and the opening of the Southbound link will naturally follow. Significantly, Bond Connect allows primary issuance in the bond market, not just secondary trading, and for the Hong Kong offshore market it offers a range of new product development and structuring options.

Bond Connect builds on Linklaters experience and strength in legal and financial innovation having advised HKEx on the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, as well as Linklaters’ expertise in advising a variety of clients on legal and regulatory issues relating to Mainland bond market access."

For further information please contact Mimi Yau.