Bond Connect - another major milestone in mutual market access

The Bond Connect programme launched today marked 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 (Stock Connect). Bond Connect adds to the current modes of access to the China Interbank Bond Market (CIBM), such as the Qualified Foreign Institutional Investors (QFII) scheme, the RMB Qualified Foreign Institutional Investor (RQFII) scheme and the direct access scheme for foreign institutional investors (FII), by introducing a more streamlined way to trade and hold onshore bonds in the CIBM for foreign investors.

We discuss in this bulletin the features of Bond Connect and some of the legal and regulatory issues which market participants and prospective investors should be aware of.

Read more