Member Login

Forgot username/password?

HK/China Bond Connect: Coming Soon to a Broker Near You

May 22, 2017

The approval of the Hong Kong-China Bond Connect scheme was the most exciting news for offshore China-watchers last week. Although the exact launch date remains TBD, the rumor mill suggests the linkage could be operational as early as July 1st. In other news, the PBOC decided that the market had sweated long enough, injecting the largest single-day shot of liquidity in four months. However, they used 7-day reverse repos as their tool of choice, suggesting that the deleveraging would continue and market players shouldn’t get too comfortable. Finally, the week saw two positive signs for pension reform– the launch of a new type of mutual fund for pensioners, and an announcement that state assets could soon be transferred to shore up underfunded mandates. Details about the week’s events can be found in the attached PDF.

Topics covered: HK-China Bond Connect Scheme, Deleveraging, Insurance Regulation, SOE Reform

Read More

The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles.