Southbound Bond Connect

On 15 September 2021, the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) jointly announced that southbound trading under Bond Connect would launch on 24 September 2021. 

On the date of the announcement, the PBOC has published a notice and FAQs, and some of the infrastructure services institutions (namely, China Foreign Exchange Trade System & National Interbank Funding Center, Shanghai Clearing House and Central Moneymarkets Unit operated by the HKMA) have also published their rules or operational arrangements, for Southbound Bond Connect. As we await the publication by other infrastructure services institutions of their rules, we summarise in this Bulletin the details of Southbound Bond Connect that are already in the public domain and set out a few of our observations.