债券通“南向通”迎来上线四周年

Core Insights - The "Southbound Bond Connect" has marked its fourth anniversary, enhancing the connectivity and integration of financial markets between mainland China and Hong Kong, while providing new opportunities for mainland investors to access global markets [1][4] - The launch of "Southbound Bond Connect" is seen as a significant milestone in achieving mutual access between the north and south of China's bond markets, solidifying Hong Kong's position in bond financing [1][4] Market Performance - As of the end of August 2023, there are 971 bonds under the "Southbound Bond Connect" with a total balance of 574.21 billion yuan, reflecting a year-on-year increase of 21% in custodial balance [4] - The continuous policy support from the People's Bank of China and the Hong Kong Monetary Authority has been crucial for the growth of the "Southbound Bond Connect" [4] Investment Opportunities - The "Southbound Bond Connect" allows mainland investors to diversify their portfolios by investing in various currencies, including Hong Kong dollars, Renminbi, and other foreign currencies [5] - The expansion of the "Southbound Bond Connect" to include more non-bank financial institutions is expected to enhance liquidity and activity in the Hong Kong bond market [7] Institutional Development - Participation in the "Southbound Bond Connect" is viewed as a way for domestic institutions to enhance their international operational capabilities and improve investment decision-making and risk management [6] - The recent optimization measures announced by the People's Bank of China aim to facilitate easier access for mainland investors to multi-currency bonds and extend settlement times [7] Future Outlook - The offshore Renminbi bond market is expected to continue to grow, with the cost of "dim sum bonds" remaining lower than that of US dollar bonds, making them more attractive for issuers [8] - The increasing demand from domestic investors for overseas asset allocation, combined with supportive policies and improved infrastructure, is gradually revealing the market potential of the "Southbound Bond Connect" [8]