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HSBC, Bank of China among 11 lenders to complete US$619 million in deals as southbound Bond Connect debuts
- Bank of China (Hong Kong) completes 55 transactions worth 1.29 billion yuan (US$199.5 million) for 27 mainland institutions in Hong Kong on Friday
- The Shenzhen government will issue 5 billion yuan worth of bonds in Hong Kong next month
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Eleven Hong Kong lenders including HSBC and Bank of China (Hong Kong) completed 4 billion yuan (US$618.73 million) worth of transactions on the first day of trading of the newly launched southbound Bond Connect on Friday, according to the People’s Bank of China.
Over 40 mainland institutional investors conducted 150 transactions to buy a wide range of Hong Kong bond products, the central bank said in a statement on its website.
BOCHK, one of the note-issuing banks in the city, said it completed 55 transactions worth 1.29 billion yuan for 27 mainland Chinese institutions.
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HSBC and Standard Chartered, the other two note-issuing banks, as well as China Citic Bank International and China Construction Bank (Asia), said they had also conducted trades for clients but did not disclose the amount.
Beijing last week approved the long-awaited scheme, allowing 41 mainland banks and 173 qualified domestic institutional investors to trade all existing bonds in Hong Kong, with a daily quota set at 20 billion yuan and a yearly limit of 500 billion yuan. The northbound route of the scheme, that allows international investors to trade on the mainland Chinese bond market without any quota, was launched in 2017.
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In Hong Kong, the Hong Kong Monetary Authority has appointed 13 banks, including the three note-issuing lenders, as market makers.
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