Core Insights - The Bond Connect program, launched on July 3, 2017, serves as a significant bridge connecting domestic and international financial markets, facilitating foreign investment in China's interbank bond market [1][2] - The program has expanded over the years, with the introduction of the "Southbound" channel in September 2021, allowing domestic investors to access the Hong Kong and global bond markets [1][4] - The People's Bank of China emphasizes a focus on institutional openness, aiming to enhance the international appeal of China's bond market while ensuring financial security [7] Group 1: Performance and Growth - On its first day, Bond Connect saw 142 transactions totaling 7.048 billion yuan, indicating strong interest from foreign investors [2] - As of May 2024, the "Northbound" channel has attracted 821 investors, with a total transaction volume of 9.792 trillion yuan in May 2024, averaging 46.6 billion yuan daily compared to just 2.2 billion yuan daily in 2017 [2][6] - Foreign institutions held 4.22 trillion yuan in interbank market bonds by May 2024, accounting for approximately 3% of the total custody volume [2] Group 2: Market Integration and Internationalization - The Bond Connect program has significantly improved the accessibility of China's bond market for international investors, enhancing its international influence and integration with global markets [3][6] - The "Southbound" channel has seen substantial growth, with the number of bonds under custody increasing from 35 to 865 and the balance rising from 5.525 billion yuan to 442.02 billion yuan as of May 2024 [4] - The introduction of the "Swap Connect" in May 2023 further supports cross-border investment and risk management for both domestic and foreign investors [5] Group 3: Future Outlook - The People's Bank of China plans to continue enhancing the Bond Connect and Swap Connect frameworks, aiming to create a more favorable investment environment for foreign institutions [7] - The bond market's inclusion in major global indices like Bloomberg Barclays and JPMorgan has attracted significant long-term capital, reflecting growing confidence in China's financial market openness [6] - The ongoing reforms and enhancements in the bond market are expected to further stimulate foreign investment, driven by China's economic growth and regulatory improvements [6]
债券通高效运行七周年 中国债市国际认可度显著提升
Zheng Quan Ri Bao·2025-08-08 07:28