Core Viewpoint - The expansion of the "Southbound Bond Connect" is expected to enhance the internationalization of the RMB and strengthen Hong Kong's position as a financial hub, while improving the efficiency of trading and settlement mechanisms [2][3]. Group 1: Market Impact - The expansion will inject new liquidity and activity into the Hong Kong bond market, deepening the interconnectivity between domestic and foreign markets [2]. - It will broaden the types of market participants and enrich investment demand [3]. - The integration of rules and products between Hong Kong and mainland bond markets will be promoted [3]. Group 2: RMB Asset Perspective - The expansion is anticipated to increase the demand for RMB-denominated bonds in overseas markets and diversify investment options for RMB assets [3]. - Optimizing the offshore RMB bond repurchase mechanism will enhance liquidity and investment attractiveness of offshore RMB bonds [3]. Group 3: Long-term Outlook - The optimization of the Bond Connect is expected to create a virtuous cycle of market vitality, institutional upgrading, and currency competitiveness, advancing deeper financial opening in China [3]. - Financial regulatory authorities are advised to establish a regulatory framework that matches the level of openness and improve monitoring mechanisms for cross-border capital flows [3].