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Thursday, December 03, 2020, 14:01
HKSAR, mainland studying Bond Connect framework
By Xinhua
Thursday, December 03, 2020, 14:01 By Xinhua

This undated photo shows the building of the Hong Kong Monetary Authority. (IC)

HONG KONG - The Hong Kong Monetary Authority (HKMA) is studying the framework of Southbound Bond Connect with the People's Bank of China (PBOC), an HKMA spokesperson said Wednesday.

The two sides will form a working group to take forward the study and engage the industry as appropriate, the spokesperson said, adding that more details will be announced when available.

Launched more than three years ago, Bond Connect links mainland and Hong Kong Special Administrative Region markets, granting overseas investors easier access to the enormous market of the Chinese mainland. 

ALSO READ: Bond Connect proves worth as foreign-capital source 1 year on

Launched more than three years ago, Bond Connect links mainland and Hong Kong Special Administrative Region markets, granting overseas investors easier access to the enormous market of the Chinese mainland. The program has won the recognition of global investors.

"When discussing the features of Southbound Bond Connect with the mainland authorities, we will consider how best to support the two-way opening up of the mainland's financial markets, ensure proper risk controls, as well as to promote the development of Hong Kong's bond market and strengthen Hong Kong's status as an international financial center," the spokesperson said.

ALSO READ: Lam supports HK-mainland Bond Connect

Eddie Yue, Chief Executive of the HKMA, said the Southbound Bond Connect will further enhance the mutual access between the capital markets and facilitate mainland investors' diversified asset allocation, while consolidating Hong Kong's role as the intermediary for capital flowing into and out of the mainland.

"It will generate enormous opportunities for Hong Kong's financial services industry," Yue said.

READ MORE: Bond connect: Draft rules on northbound investment issued


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