Following the Stock Connect scheme, Bond Connect aims to become the most convenient channel for foreign institutional investors to enter the Chinese fixed income market, industry sources said.
The cross-border bond trading programme was formally approved by the People’s Bank of China (PBoC) and Hong Kong Monetary Authority (HKMA) yesterday, according to a joint-statement. In the first stage, only Hong Kong and overseas institutional investors are allowed to trade bonds without quota restrictions in the China Interbank Bond Market (CIBM). The over-the-counter market accounts for 95% of total bond trading volume in China.
Source:https://fundselectorasia.com/bond-connect-approval-chinas-market/