Hong Kong, China Regulators to Start Trial Bond Connect Trading Monday

BEIJING (Sputnik) — The People’s Bank of China, along with the Hong Kong Monetary Authority have agreed on the launch of the mechanism of mutual access to the bond market and set the start of the trial Northbound trading through the bond connect for Monday, July 3, the People’s Bank of China said in a statement Sunday.

"In order to promote the development of the bond markets in Mainland China and Hong Kong SAR, the People’s Bank of China (PBC) and the Hong Kong Monetary Authority (HKMA) have approved China Foreign Exchange Trade System & National Interbank Funding Centre, China Central Depository & Clearing Co., Ltd, Shanghai Clearing House, together with Hong Kong Exchanges and Clearing Limited and Central Moneymarkets Unit to launch mutual bond market access between Hong Kong SAR and Mainland China (Bond Connect). Trial operation of Northbound Trading will commence on 3 July 2017," the statement said.

​The Northbound Trading allows Hong Kong’s and international investors trade mainland China’s bonds, whereas the Southbound Trading provides the investors from the mainland China with the opportunity to trade Hong Kong’s and foreign bonds.

No information on the launch of the Southbound Trading has been provided to date.