Bank of China, HSBC among first to trade on new bond link
(Sept 24): A new channel for Chinese investors to purchase debt overseas launched Friday, with Bank of China (Hong Kong), HSBC Holdings Plc and Standard Chartered Plc among the major banks conducting trades.
The southbound link of the Bond Connect draws capital from the mainland to the southern city of Hong Kong to complete the loop with a northbound program started in 2017. With 41 banks among those eligible to participate during the initial phase, analysts see it eventually boosting China’s offshore bond market and issuance of Dim Sum and ESG-compliant notes, as well as bringing offshore and onshore yields closer.
Bank of China (Hong Kong) started conducting bond trades with onshore institutional investors on the first day of trading under the program, according to a statement. Bank of Communications also completed a range of trades in yuan, Hong Ko