Financial Secretary Paul Chan has welcomed the endorsement of Bond Connect by the Hong Kong Monetary Authority and the People's Bank of China.
The scheme allows Hong Kong and Mainland financial infrastructure institutions to collaborate in establishing mutual bond market access.
Hailing today's announcement, Mr Chan said Bond Connect will allow overseas investors to access the Mainland interbank bond market through infrastructural connections between the Mainland and overseas bond markets.
He said it marks an important milestone in the development of mutual capital market access between Hong Kong and the Mainland.
He thanked the Central Government for supporting the scheme, saying: "Bond Connect will facilitate investors' participation in the bond markets, improve the connectivity between market infrastructures and promote the healthy development of the bond markets, thereby enhancing Hong Kong's status as an international financial centre and the global offshore renminbi business hub."
Monetary Authority Chief Executive Norman Chan said through Bond Connect, Hong Kong will serve as the gateway for overseas investors to enter the Mainland bond market, leveraging on its role as an international financial centre as well as an intermediary for capital flows between the Mainland and international markets.
Bond Connect will be implemented in phases. Northbound trading will start in the initial phase, allowing Hong Kong and other overseas investors to invest in the China Interbank Bond Market through mutual access.
Southbound trading will be explored later.
Bond Connect will formally launch after rules and system development have been finalised, market participants' practical needs have been suitably addressed, regulatory approvals have been granted and other preparations have been completed.
Click here for the joint announcement.
