China’s “Southbound Link” on the 24th went online with an an...

China’s “Southbound Link” on the 24th went online with an annual quota of 500 billion yuan, and investors are primary traders in the open market, etc.

$TENCENT(00700.HK)$ $BABA-SW(09988.HK)$ The People’s Bank of China and the Hong Kong Monetary Authority jointly announced that the “Southbound Link” of the Southbound Cooperation on Hong Kong and the Mainland’s bond markets will be launched on September 24. The annual total quota of "Southbound Link" is 500 billion yuan equivalent, and the daily quota is 20 billion yuan equivalent. In terms of participants, mainland investors are tentatively designated as 41 banking financial institutions (excluding non-bank financial institutions and rural financial institutions) among the central bank’s 2020 primary dealers in the open market business; Qualified Domestic Institutional Investors (QDII) And RMB Qualified Domestic Institutional Investors (RQDII) can also carry out overseas bond investment through the "Southbound Link".

The Hong Kong Monetary Authority stated that the scope of investment bonds for mainland investors through the "Southbound Link" does not limit the currency, but initially covers RMB and Hong Kong dollar bonds, and will strive to expand to invest in other foreign currency bonds in the future.

Article excerpted from Reuters Financial Morning Post