Bond connect boost for yuan

Qualified overseas investors were able to invest in the Chinese mainland interbank bond market via the mainland-Hong Kong bond connect program as of Monday.

According to the "northbound" bond connect, which is now operating on a trial basis, qualified overseas investors can invest in bonds that are tradable on the mainland interbank bond market, including treasury bonds, local-government bonds, policy bank bonds, commercial bank bonds, corporate bonds and asset-backed securities. The "southbound" bond connect, via which mainland investors can invest in Hong Kong's interbank bonds, is yet to be launched.

The "northbound" bond connect marks another important step in the opening up of China's financial market and a milestone in the push for internationalization of the yuan.