BEIJING, July 4 (Xinhua) -- Since seven years ago when northbound trading kicked off, Bond Connect has significantly boosted global participation in China's bond market, reported Securities Daily on Wednesday.
On July 3, 2017, northbound trading under Bond Connect was opened to investors, marking a new channel for overseas investors to trade bonds on China's interbank bond market.
Latest statistics with Bond Connect Company Limited (BCCL) showed that overseas institutional investors that entered China's interbank bond market mounted up to 821 ones by the end of May this year.
Their trading activity also kept improving in the past seven years. In May, aggregate turnover of northbound trading under the Bond Connect reached 979.2 billion yuan, with daily average at 46.6 billion yuan, much higher than the 2.2 billion yuan comparable figure in 2017.
Thanks to the convenient access for overseas bond investors, Renminbi-denominated bonds obtained more favor from overseas institutional investors.
Data with the Shanghai Head Office of the People's Bank of China showed that overseas institutional investors held 4.22 trillion yuan of bonds on China's interbank bond market by the end of May, accounting for about three percent of the comparable total.
As a milestone for opening up of China's bond market, Bond Connect, whose operating mechanism was optimized much over the past seven years, has become one of the most reliable channels for international investors to participate in China's bond market, said the report citing Wang Dahai, head of Greater China at Bloomberg.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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