(Yicai Global) May 17 -- The Hong Kong Monetary Authority will work closely with the Chinese central bank and other departments to speed up implementation of the mainland China-Hong Kong Bond Connect program, which will allow overseas investors to buy Chinese bonds and vice versa, the monetary authority said yesterday.
Both organizations said they would push the Bond Connect program whose first phase, dubbed Mainland Bond Connect, will allow foreign investors to access the mainland bond market without being subjected to a restricted investment quota. Later, the program will open up to allow foreign bond investment in the special administrative region under Hong Kong Bond Connect.
The exact date for the program's inauguration will be announced separately,
The Bond Connect program marks another milestone in China's efforts to open up its capital accounts, said HKMA's Norman Chan. The mainland has the third largest bond market in the world, worth CNY65 trillion (USD9.4 trillion), but foreign investors hold less than 2 percent of this, he added, saying there is plenty of room for improvement in terms of increasing foreign involvement in the Chinese bond market.