Bond Connect Company Limited’s Post

Bond Connect Flash Report for AUG 2024 - Northbound Bond Connect: the monthly trading volume of August was RMB 954.3 billion, with an average daily turnover of RMB 43.4 billion for the month. Policy financial bond and Chinese government bond were the most popular bond types, accounting for 43% and 36% of the trading volume respectively. In terms of tenor, 0-1Y made up 40% of the trading volume, being the highest. - Northbound Swap Connect: 575 transactions were traded in August, with volume of RMB 312.08 billion. By the end of August, 64 overseas institutions were onboarded under Northbound Swap Connect. - ePrime Issuance Service successfully facilitated 20 issuances with total issue size of RMB 27.618 billion equivalent in August. Participating underwriters of this month, listed in alphabetical order, included Bank of China, China CITIC Bank International, China Industrial Securities International, China International Capital Corporation, China Securities International, CITIC Securities, CMB International, Guotai Junan International, Haitong International, Huatai International, ICBC International, Industrial Bank Co., Ltd. Hong Kong Branch, Orient Securities (Hong Kong), Shanghai Pudong Development Bank Hong Kong Branch, and TF International. - PMIP published the pre- and post-issuance information of 89 primary bonds in August. Stay tuned for more updates and upcoming events. Subscribe to us now: https://lnkd.in/g-icFkjh Regarding the applicable disclaimer for posts on LinkedIn, please refer to our company website: https://lnkd.in/g_Gvdzfk #BondConnect #BCCL #ChinaBond #FlashReport

Bond Connect Flash Report for April 2024 - Have a look at the strong performances highlighted below: · In April, the monthly trading volume was RMB 896.8 billion, and the monthly average daily turnover stood at RMB 40.8 billion. Chinese government bond was the most popular bond type, accounting for 60% of the trading volume. · ePrime Issuance Service successfully facilitated 19 issuances with total issue size of RMB 21.53 billion equivalent in April including China Development Bank Hong Kong Branch‘s dual-tranche 3 and 5 year offshore RMB Belt and Road Themed issuance on 16 April, totaling 2.8 billion. Participating underwriters of this month, listed in alphabetical order, included Bank of China*, Bank of Communications, BOCOM International, China Industrial Securities International, China International Capital Corporation, China Securities International, CITIC Securities, CMB International, Guotai Junan International, Huatai International, ICBC International, Industrial Bank Hong Kong Branch, and TF International. · BCCL hosted the ePrime Issuance Service Enhancements Update and Industry Consultation Event on 26 April, where BCCL shared the latest progress of ePrime Issuance Service and upcoming product developments. Participants also actively engaged in discussions on book-building, industry trends as well as feedback on future developments. · On 10 April, BCCL and MarketAxess jointly hosted a Trader’s Table, inviting guests from banks, security firms and asset managers to discuss latest updates on electronic trading, data analysis, and cross-border initiatives such as Swap Connect and Repo. · On 17 April, Bond Connect series event featured Ping An Asset Management on “Seizing Opportunities in 2024: A Sharing on China's Macroeconomic Outlook and Bond Index Enhancement Strategies”, delving into China’s microeconomic outlook, investment dynamics in Chinese bond market, and practical application of bond index tracking and index enhancement strategies. · PMIP disclosed the pre- and post-issuance information of 92 primary bonds in April.   *Bank of China includes Bank of China Limited, a joint stock company incorporated in the People’s Republic of China with limited liability, and Bank of China (Hong Kong) Limited. Stay tuned for more updates and upcoming events. Subscribe to us now: https://lnkd.in/g-icFkjh Regarding the applicable disclaimer for posts on LinkedIn, please refer to our company website: https://lnkd.in/gqhBSHb3 #BondConnect #BCCL #ChinaBond #FlashReport

Bond Connect Flash Report for March 2024 - Have a look at the strong performances highlighted below: · In March, the monthly trading volume was RMB 1,010.5 billion, and the monthly average daily turnover stood at RMB 48.1 billion. Chinese government bond was the most popular bond type, accounting for 64% of the trading volume. · ePrime Issuance Service successfully facilitated 8 issuances with total issue size of RMB 6.35 billion equivalent in March. Participating underwriters, listed in alphabetical order, included China Industrial Securities International, China International Capital Corporation, China Securities International, CNCB Capital, Guotai Junan International, ICBC International, Orient Securities (Hong Kong), Shanghai Pudong Development Bank Hong Kong Branch, TF International. · On March 6, Bond Connect series event featured Guotai Junan Securities on “Opening-up and Interconnectivity: Emerging Opportunities in China Bond Market”, sharing the latest views on trading strategies, risk management and the latest developments in China’s bond market. · On March 20, BCCL participated in “China Bond Market Forum 2024” hosted by International Capital Market Association as an exhibitor in Beijing. · On March 26, BCCL was invited by International Capital Market Association to speak as a panelist at “The Chinese and Asian Cross-border Bond Markets – Innovations and Opportunities” event, exploring the latest progress of China’s interbank bond market, current achievement and growing trend of Bond Connect scheme, and development prospect of international investor access to onshore repo market. · PMIP disclosed the pre- and post-issuance information of 80 primary bonds in March, including financial bonds and policy financial bonds. Stay tuned for more updates and upcoming events. *Subscribe to us now*: https://lnkd.in/g-icFkjh Regarding the applicable disclaimer for posts on LinkedIn, please refer to our company website: https://lnkd.in/g4kqe8aF #BondConnect #BCCL #ChinaBond #FlashReport

#BondConnect Flash Report – Feb 2024   · In February, the monthly trading volume was RMB 677.5 billion, and the monthly average daily turnover stood at RMB 37.6 billion. Chinese government bond was the most popular bond type, accounting for 64% of the trading volume.   · ePrime Issuance Service successfully facilitated 3 issuances with total issue size of RMB 2.6 billion equivalent in February. Participating underwriters, listed in alphabetical order, included BOC International, China Industrial Securities International, China International Capital Corporation, China Securities International, CMB Wing Lung Bank.   · BCCL joined Bloomberg’s networking event “China Bonds in the Growing Asset Management and Family Office Sector” as a speaker, discussing opportunities and challenges of investing China bonds and the latest updates of Bond Connect Scheme.   · To further augment stakeholders’ access to the China Interbank Market’s information via BCCL website, a survey on demands for information was launched to collect market insights and opinions.   · PMIP disclosed the pre- and post-issuance information of 41 primary bonds in February, including financial bonds and policy financial bonds.   Start Survey: https://lnkd.in/gP7X6UbN Check the full FlashReport and the applicable disclaimer on our website: https://lnkd.in/giMUZD8s   #BondConnect #Bond #BCCL #flashreport #chinabond

China’s Bond Connect to Slash Fees by 60%, Most Since Launch https://lnkd.in/guVr7h7j Bond Connect Company Limited (BCCL) will reduce its service fees by 60% starting January 1, 2025—the largest reduction since the program's inception in 2017 and the fourth overall. Fees for bonds with a remaining term of one year or less will decrease from 0.0015% to 0.0006% of the nominal value, while those with terms exceeding one year will drop from 0.0030% to 0.0012%. This move aims to lower transaction costs for overseas investors and enhance the efficiency of the Bond Connect mechanism, which has seen significant growth, with over 800 investors from nearly 40 jurisdictions and a record average daily trading volume of RMB 43.1 billion in the first ten months of 2024.  #China #Hongkong #Chinaeconomic #Policy #Bondconnect #Bond #Crossborder #Finance #InvesTAODigest

A number of Chinese brokerages have temporarily halted their securities lending business, only allowing the return of securities lent and banning any further borrowing. A source said that China's Top four onshore brokerages, which have the largest lending pools of stocks, have suspended securities financing. These firms have not said when the pool will re-open.   Wind Information showed that as of April 10 China's onshore stock market margin trading and securities lending balance is CNY 1,428.9 billion ($ 197.46 billion), of which the margin trading balance was CNY1,397.7 billion ($193.15 billion). There was CNY 31.1billion (USD4.3 billion) of outstanding securities lending on the Chinese stock markets as of the close of markets April 10th, this is a contraction of 40% from April 2023 The country’s securities watchdog China Securities Regulatory Commission started to crack down on securities lending earlier this year, banning the increase in the scale of the lending pool and barring illicit behaviors such as T+0 trading. Most retail investors believe that securities shorting is one of the reasons why China's stock market has slumped in recent years. #China #stockmarket #margintrading #securitieslending

[KH Explains] [Banks puzzled by derivatives misselling proposal] Absence of court involvement ‘exceptional’ for Korea, experts say South Korean regulators’ push for banks to make up for investors’ losses incurred from equity-linked securities tied to a Hong Kong index has left both Korean and foreign banks baffled. Korea's major lenders accepted compensation guidelines suggested by financial watchdog the Financial Supervisory Service last month, agreeing to partly redress investors for the losses from the ELS products. The payback scheme is expected to cost around 2 trillion won ($1.47 billion) in total for the lenders, as it covers some 40 percent of the 5 trillion won investment losses from the ELS products that face maturity in the first seven months of this year. While 신한은행 and 하나은행 have already started to hand out compensation, KB Kookmin Bank, a top seller of ELS products among local banks, announced it would start the compensation process next Monday. Tap below to read full story. #bank #commercial #ELS #FSS #compensation #investment #misselling #HongKongindex https://lnkd.in/gPsDVGse

🎉 Launched in 2017, Bond Connect has seen significant growth to become the primary channel for international investors’ access to the Mainland bond market. Success by the numbers: 📊 Foreign investors have increased their holdings of onshore interbank bonds for nine consecutive months, with bond holdings amounting to over RMB4,220 billion as of end-May 2024. 📈 The Northbound Scheme has attracted over 820 institutional investors, with average daily turnover soaring from around RMB 1.5 billion in its first month to around RMB 46.6 billion in May 2024 – a remarkable 30-fold increase! Upon the collaborative efforts of the People’s Bank of China (PBoC), the Hong Kong Monetary Authority (HKMA), and the Securities and Futures Commission (SFC), it was announced on 9 Jul that international investors will be able to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under Northbound Bond Connect as margin collateral for Northbound Swap Connect transactions. 🙌 The measure will provide investors with the additional choice of non-cash collateral, reducing their liquidity cost and improving capital efficiency. It will also help vitalise investors’ onshore bond holdings and promote synergies between Bond Connect and Swap Connect, thereby further invigorating market participation in the Connect Schemes. The HKMA remains committed to meeting the investors’ evolving needs and facilitating the two-way cross-boundary capital flow. We will maintain close communication with the PBoC and relevant regulatory authorities on the Mainland and in Hong Kong to continue to broaden and enhance the Connect Schemes, with a view to promoting the high-quality opening-up of the Mainland financial markets and RMB internationalisation. 🤝 🌍   Read the HKMA Chief Executive Eddie Yue’s keynote speech at the Bond Connect Anniversary Summit 2024 (Chinese only) here: https://lnkd.in/gpjKACGe Learn more about the new measure on Swap Connect margin collateral arrangement: https://lnkd.in/gkryEm5K #BondConnect #SwapConnect #CrossBorderInvestment #HKMAinnovates #FinancialConnectivity #PBoC

@CSRC Approves Suspension of Securities Lending Business to Strengthen Countercyclical Regulation 📉🔒 In response to investor concerns and to maintain market stability, the China Securities Regulatory Commission (CSRC) has approved the suspension of securities lending by China Securities Finance Corporation Ltd., effective from July 11, 2024. Existing contracts can be extended but must be settled by September 30. The margin ratio for securities lending will be raised to 100%, and for private securities investment funds to 120%, starting July 22, 2024. These measures are part of ongoing efforts to reduce market impact and ensure regulatory compliance, aiming to stabilize irrational fluctuations and safeguard investor interests. 📊🔍 👉 Read more: https://lnkd.in/gNwc-_JN #SSE #ShanghaiStockExchange #CSIIndex #ETF #2024 #mainland #China #HongKong #investors #Stock #MarketShare #ChinaSecurities #BondMarket #MaketEconomy #Listedcompany #Trading #InvestChina #CSRC #SecuritiesLending #MarketStability #Regulation #InvestorProtection #Finance #ChinaFinance #MarketRegulation

Financial regulators on the Chinese mainland and Hong Kong plan to introduce new features to the one-year-old Swap Connect program to further open up China’s multi-trillion-dollar swap market to foreign investors.The People’s Bank of China, Hong Kong’s Securities and Futures Commission and the Hong Kong Monetary Authority Monday announced three enhancements for the Northbound Trading of Swap Connect program to streamline transactions and reduce trading costs for investors, taking effect on May 20. The enhancement measures include: (1) the introduction of interest rate swap contracts (IMM contracts) with payment cycles based on the settlement date of the International Monetary Market (IMM); (2) the introduction of a contract compression service and a supporting historical starting interest contract; and (3) Extending the reduction and waiver of trading fees and contract clearing fees. Northbound Trading of Swap Connect provides a convenient and secure channel for international investors to trade interest rate swap products in the Mainland via a connection between infrastructure institutions in Hong Kong and the Mainland. The scheme aims to facilitate global investors’ management of interest rate risks arising from their allocation to Mainland bonds.As at the end of April 2024, a total of 20 domestic institutions and 58 foreign investors participated in the Northbound Swap program , with a cumulative total of more than 3,600 transactions of RMB interest rate swaps with an aggregate notional principal amount of approximately CNY 1.77 trillion ($ 0.24 trillion), and a daily average notional principal amount of approximately CNY 7.6 billion ($ 1.05 billion)since the beginning of the program.#China #HongKong #interestswap #crossborder #investment