Key Facts
• July 8, 2025: China’s central bank announced support for overseas bond investments.
• Bond Connect program expanded to include non-bank institutions like insurers and asset managers.
• “Southbound” access to Hong Kong’s bond market opened to securities and investment firms.
• “Swap Connect” framework broadened for foreign investors to trade yuan interest rate swaps.
• China aims to promote yuan-denominated bonds in global investment portfolios.
• Efforts to open China’s bond market to regions like the Middle East, South America, and Europe.
• Hong Kong Exchange CEO emphasized its role in linking global capital with Chinese opportunities.
Summary
China’s central bank announced measures to expand domestic investors’ access to overseas bonds through the Bond Connect program, now including non-bank institutions like insurers and asset managers. The “Southbound” channel to Hong Kong’s bond market will be accessible to securities and investment firms, while the “Swap Connect” framework will allow foreign investors to trade yuan interest rate swaps. These initiatives aim to enhance global integration of China’s bond market, with a focus on promoting yuan-denominated bonds in international portfolios. Efforts to open the market to regions such as the Middle East, South America, and Europe were also highlighted. Hong Kong’s unique position as a bridge between global capital and Chinese opportunities was emphasized amid global political uncertainties.
