Room for improvement

Author: Karry Lai | Published: 11 Dec 2018

IFLR’s latest poll examines the good, the bad and possible areas of improvement for the Bond and Stock Connect initiatives

Have the Bond and Stock Connects programmes been successful?

Two so-called Connect initiatives were launched between 2014 and 2017 to encourage access to the Chinese bond and stock markets for offshore investors in Hong Kong. These mutual market access schemes represent a significant landmark in opening up Chinese capital markets to international financing – foreign investors were believed to currently hold roughly two percent of Chinese local bonds, a small amount by all accounts, though there are hopes that Connect programmes will improve this figure.

The Stock Connect, a collaboration between the Hong Kong, Shanghai and Shenzhen Stock Exchanges, launched in 2014. It allows international and mainland Chinese investors to buy and sell securities in each other's markets through the trading and clearing facilities of their home exchange. The Bond...