债券通开通七周年 “北向通”日均成交量增长超30倍

Core Insights - The People's Bank of China announced new measures to enhance the Bond Connect program, allowing foreign institutions to use Northbound Bond Connect for margin payments in swap transactions, which will increase the application of RMB bonds as offshore collateral [1][3] - The Bond Connect program has significantly increased the daily trading volume of Northbound transactions, from an average of 1.5 billion RMB in its first month to approximately 46.6 billion RMB in May 2023, representing a growth of over 30 times [1][3] - The Chinese bond market is now the second largest globally, yet the proportion of foreign investment remains relatively low, indicating substantial room for growth [2][3] Industry Developments - The Bond Connect has become a crucial link between domestic and international bond markets, facilitating foreign capital inflow into China's financial markets [3] - As of May 2024, over 1,100 institutions from more than 70 countries and regions have entered the Chinese interbank bond market, with foreign institutions holding a total of 4.3 trillion RMB in bonds, reflecting an average annual growth rate of nearly 20% over the past five years [3] - The Northbound Swap Connect has attracted 61 foreign institutions, completing over 4,300 transactions with a total nominal principal of approximately 2.2 trillion RMB, showcasing significant growth in trading volume [3]