HK-China Bond Connect: expect uncertainty

Author: Brian Yap | Published: 8 Jun 2017

The Hong Kong-China Bond Connect is drawing close to its rumoured July 1 launch – which coincides with the 20th anniversary of the territory’s handover - but many questions remain concerning this scheme.

The latest iteration of the platform comes two years after a stock link between Hong Kong and Shanghai was created, and a year after one with Shenzhen.

This comes as Hong Kong Stock Exchange (HKEx) chief executive Charles Li revealed today at the fourth RMB fixed-income and currency conference in the former British colony that PRC regulators’ had decided not to launch the southbound channel of the Bond Connect – Chinese mainland into Hong Kong - before 2019.

Counsel in China point to a more pressing issue over beneficial ownership, because insufficient clarity held some foreign investors and regulators back at the initial stage of the Stock Connect.

 "Foreign investors really pay a lot of attention to the beneficial ownership...


 

 

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