Bond Connect is a mutual bond market access scheme between Mainland and Hong Kong, built to promote the development of the bond markets in Hong Kong and Mainland.
Architected jointly by the People's Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA), a market infrastructure linkage has been formed since 2017, where China Foreign Exchange Trade System & National Interbank Funding Centre (CFETS), China Central Depository & Clearing Co., Ltd (CCDC), and Shanghai Clearing House (SHCH), Cross-border Interbank Payment System Co., Ltd (CIPS) (together the "Mainland financial infrastructure services institutions"), joined force with Hong Kong Exchanges and Clearing Limited and the Central Moneymarkets Unit (CMU) of the HKMA in establishing Bond Connect.
The initial phase of Bond Connect, Northbound Trading, which commenced on 3 July 2017, allows overseas investors from Hong Kong and other countries and areas ("Overseas Investors") to trade, settle and hold debt securities (CIBM Bonds) tradable in the China Interbank Bond Market (CIBM) through the market infrastructure linkage.
Since the scheme's inception, the Northbound Trading has been well received by international investors and attracted huge capital flows into the Mainland financial markets, as well as created enormous opportunities for Hong Kong's financial institutions. This has successfully laid a good foundation for the launch of Southbound Trading.
On 24 September 2021, the scheme has further extended to Southbound Trading, enabling Mainland institutional investors to invest in the Hong Kong bond market.
Bond Connect abides by the relevant laws and regulations of both Mainland China and Hong Kong.