Premier says main­land-HK bond trad­ing link on the way

China Daily (Canada) - - VIEWS - By LUOWEITENG in Bei­jing and LIN WENJIE in Hong Kong

A bond trad­ing link will be set up be­tween the main­land and Hong Kong this year to fur­ther open the coun­try’s se­cu­ri­ties mar­ket, Premier Li Ke­qiang said onWed­nes­day.

Speak­ing at the news con­fer­ence af­ter the an­nual ses­sion of the Na­tional Peo­ple’s Con­gress in Bei­jing, Li said un­der the planned bond trad­ing link, over­seas in­vestors will be able to buy and sell bonds in the Chi­nese main­land mar­ket while of­fer­ing main­land in­vestors ac­cess to the bond mar­ket in Hong Kong.

Fol­low­ing Li’s re­marks, Hong Kong Ex­changes & Clear­ing Ltd said that the bond trad­ing link rep­re­sents a ma­jor break­through in the devel­op­ment of the main­land cap­i­tal mar­kets, and fur­ther strength­ens the role of Hong Kong as a gate­way be­tween the main­land and in­ter­na­tional mar­kets.

The share prices of HKEx climbed 1.41 per­cent to close at HK$194.7 ($25) on Wed­nes­day, while the bench­mark Hang Seng In­dex de­clined 0.15 per­cent to 23,792 points.

The launch of a stock trad­ing link be­tween Shen­zhen and Hong Kong, which is es­sen­tially a car­bon copy of the Shang­hai-HK Stock Con­nect, was a head­line-mak­ing event three months ago.

The soon-to-be-launched bond con­nect puts the main­land on course to open­ing up its mas­sive bond mar­ket, cur­rently the world’s third-largest with 64 tril­lion yuan ($9.3 tril­lion) of debt out­stand­ing, in a more proac­tive man­ner.

With an­other gate­way for in­ter­na­tional in­vestors to trade in main­land mar­kets and for main­lan­ders to in­vest in Hong Kong well un­der­way, Hong Kong is well po­si­tioned to en­joy the ear­ly­mover ad­van­tage, Li said.

“This will help Hong Kong main­tain its sta­tus as an in­ter­na­tional fi­nan­cial cen­ter, and pro­vide Hong Kong in­vestors with more op­tions,” Li said.

Sal­lyWang Chi-ming, CEO of the Hong Kong In­vest­ment Fund­sAs­so­ci­a­tion, said the­bond­con­nect is def­i­nitely a good thing for over­seas in­vestors, as well as the devel­op­ment of the main­land bond mar­ket.

She em­pha­sized that the main­land bond mar­ket has al­ready at­tracted many over­seas in­vestors due to its rel­a­tively high re­turns. Hong Kong is the first place to ben­e­fit from the open­ing of the bond mar­ket.

“The past few years have seen un­prece­dented growth in mar­ket con­nec­tions be­tween the main­land and Hong Kong, but there re­mains a lack of in­vest­ment prod­ucts,” said Christo­pher Che­ungWah-fung, a mem­ber of the Na­tional Com­mit­tee of the Chi­nese Peo­ple’s Po­lit­i­cal Con­sul­ta­tive Con­fer­ence, who is also founder and chief ex­ec­u­tive of Christ­fund Se­cu­ri­ties Ltd.

The past few years have seen un­prece­dented growth in mar­ket con­nec­tions ...”

Con­tact the writ­ers through sophia@chi­nadai­lyhk.com

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.