The Southbound Bond Connect is an arrangement that enables Mainland institutional investors to invest in the Hong Kong bond market through connection between the Mainland and Hong Kong financial infrastructure services institutions.

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Under the Southbound CSD-CSD settlement link, the Mainland central securities depositories (Mainland CSDs) have joined the CMU as members to settle Southbound Bond Connect transactions and hold CMU securities on behalf of eligible Mainland institutional investors through the nominee securities account opened with the CMU.

Currently, the Southbound Bond Connect has a daily investment quota set at RMB 20 billion and an annual limit of RMB 500 billion.

Benefits for Onshore Investors Investing Through Southbound Bond Connect

  1. Eligible onshore investors can, through the CSD-CSD link, invest in debt securities lodged with the CMU
  2. Under the Southbound Bond Connect scheme, onshore investors can directly trade any eligible bond via the trading link with market makers in Hong Kong
  3. There is an annual aggregate investment quota (currently set at RMB500 billion) and daily investment quota set (currently set at RMB20 billion) for the Southbound Bond Connect scheme. There is no quota apply to each trade nor each eligible onshore investor


Last revision date : 22 Jan 2024