China’s central bank plans to broaden the scope of Chinese mainland investors eligible to access the Southbound Bond Connect by allowing securities firms, funds, insurers and wealth management institutions to participate.

This move is part of the central government’s efforts to deepen financial exchanges with the Hong Kong Special Administrative Region and support the offshore renminbi market, Jiang Huifen, deputy director general of the Financial Market Department at the People’s Bank of China, said at the Bond Connect anniversary summit on Tuesday.

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The PBOC also intends to enhance the offshore repurchase business under the program, making it easier for investors outside the mainland to manage liquidity.

Jiang said the improvement will expand the range of tradable currencies beyond renminbi to the US dollar, euro and Hong Kong dollar.

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The central bank is exploring further measures to open China’s bond market in a bid to strengthen ties among domestic and global financial markets, and enhance the efficiency of cross-border investment and financing.

The Southbound Bond Connect, launched in September 2021, provides a convenient channel for mainland institutional investors to invest in offshore bonds through Hong Kong’s bond market.

Contact the writer at irisli@chinadailyhk.com