Bond con­nect trad­ing link opens

China Daily (Hong Kong) - - CHINA -

Qual­i­fied over­seas in­vestors will be able to in­vest in the Chi­nese main­land in­ter­bank bond mar­ket via the main­landHong Kong bond con­nect pro­gram from Mon­day, ac­cord­ing to the Peo­ple’s Bank of China and the Hong Kong Mone­tary Author­ity.

Laws and reg­u­la­tions have al­ready been de­ter­mined, while a tech­ni­cal sys­tem is also in place, the or­ga­ni­za­tions said in a joint state­ment on Sun­day.

The “north­bound” bond con­nect, which al­lows qual­i­fied over­seas in­vestors to buy bonds ei­ther with ren­minbi or foreign cur­ren­cies, will op­er­ate on a trial ba­sis.

The PBOC and the HKMA have reached a con­sen­sus on is­sues in­volv­ing the prin­ci­ples on cross-bor­der reg­u­la­tory co­op­er­a­tion, and signed a mem­o­ran­dum of un­der­stand­ing on co­op­er­a­tion in strength­en­ing su­per­vi­sion.

Ac­cord­ing to the agree- ments, the two sides will es­tab­lish mech­a­nisms for in­for­ma­tion ex­change and as­sis­tance in ac­cor­dance with local laws and their own statu­tory author­ity, to com­bat vi­o­la­tions in cross-bor­der trades and en­sure ef­fec­tive op­er­a­tion of the pro­gram.

In­sti­tu­tions of both sides should or­ga­nize mar­ket play­ers to con­duct the trades in an or­derly man­ner, ac­cord­ing to the state­ment.

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