On September 24, 2021, southbound Bond Connect was officially rolled out in Hong Kong Special Administrative Region, south China. (Photo by Lv Xiaowei/Xinhua)
BEIJING, Aug. 5 (Xinhua) -- Bonds purchased by investors through southbound trading channel of Bond Connect ballooned in June, with their bond holdings under custody with Shanghai Clearing House (SHCH) by the end of June up to 170.21 billion yuan, reported thepaper.cn on Thursday.
The figure represented a 94 percent or 82.31 billion yuan of increase from May, marking a notable month-on-month growth since southbound trading was launched in September 2021.
Southbound trading, contrary to northbound trading also under the Bond Connect, provides a convenient and efficient channel for institutional investors from the Chinese mainland to invest in offshore bonds through the Hong Kong bond market.
By the end of May, bonds held by southbound trading investors and under custody with SHCH were 87.89 billion yuan.
As a matter of fact, rapid growth in the amount of bonds purchased by southbound trading investors started from May. By the end of April, southbound trading investors held in total 87 bonds, whose value stood at merely 29.67 billion yuan.
The following is a chart about the number and balances of bonds held by southbound trading investors and related month-on-month changes in balances from January to June this year.
Bond Connect is a mutual market access scheme allowing investors from Chinese mainland and Hong Kong Special Administrative Region to invest in each other's bond market. Northbound trading commenced in July 2017. (Edited by Duan Jing with Xinhua Silk Road, email@example.com)