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China-Hong Kong bond link to start on July 3

Staff Writer |
The central banks of China and Hong Kong said non-mainland investors can start trading Chinese corporate bonds in a trial beginning on July 3.

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They were confirming a calendar entry that appeared on the Bond Connect programme website late on June 30.

Trading will initially be "Northbound", so mainland investors will be not yet be able to buy and sell Hong Kong-listed debt.

The announcement coincides with the 20th anniversary of the resumption of Chinese rule in Hong Kong, and marks China's latest measure to open up its capital markets.

The Bond Connect follows similar stock-trading programmes between the Shanghai and Shenzhen stock exchanges and their Hong Kong counterpart.

In a joint statement on July 2, the People's Bank of China and Hong Kong Monetary Authority said they have agreed the principles of cross-boundary supervisory cooperation.

"For Northbound trading, the relevant regulations, policies and operational and supervisory arrangements have been finalised, technical systems are ready, and market promotion as well as on-boarding are both under way," they said.

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