Photo taken on Nov. 12, 2020 shows the night view of the Lujiazui area of Pudong, east China's Shanghai. (Xinhua/Wang Xiang)
BEIJING, Sept. 13 (Xinhua) -- China will launch southbound bond connect soon, said Pan Gongsheng, deputy governor of the People's Bank of China (PBOC), reported China Securities Journal on Monday.
Prior to Pan's remark, Hong Kong Monetary Authority (HKMA) also confirmed that it was working with PBOC to cement some details on the launching of southbound bond connect, according to the report.
Launched in 2017, Bond Connect is a trading regime that links the Chinese mainland and Hong Kong markets. Currently, the regime provides only one-way transaction, granting overseas investors easier access to the enormous market of the Chinese mainland. If southbound trading is launched, investors in Chinese mainland will be offered a new channel to participate in bond markets of Hong Kong and overseas, and the Bond Connect regime will become a two-way channel for capital to go inside or outside the Chinese mainland market.
It is expected that the southbound bond connect will promote the two-way opening-up of the financial market and facilitate the Chinese mainland investors to make diversified investment. Besides, the southbound trading will also give full play to the role of exchange rate in macro-control and balance of international payments.
Industrial experts believe that it is about time to launch the southbound bond connect for the win-win scenario it will bring about where investors could receive higher return while enterprises will enjoy a lower financing costs.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
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