It’s been a year since the Hong Kong Monetary
Authority (HKMA) and the People’s Bank of China
(PBOC) launched the Bond Connect to allow foreign investors to
invest in the China interbank bond market. While it has been a
welcomed initiative there is still a long road ahead to opening
up China’s debt markets, according to panellists
at the June 27 Fixed Income Leaders’ Summit in
Archie Ng, HKMA division head (external department) said
that as of the end of May 2018, 315 Bond Connect investors had
registered and held almost RMB130 billion ($19.7 billion
approximately) in bonds. In the first five months of 2018,
daily average trading volume amounted to around RMB3 billion.
While there are still cash settlement processes and tax issues
with the Bond Connect, he remains confident that these issues
will soon be resolved.