Bond Connect: The challenges of investing onshore

The credibility of domestic credit ratings and a lack of hedging tools remain some of the challenges for China to develop a truly international bond market, FinanceAsia's inaugural bond connect survey reveals.

In FinanceAsia’inaugural Bond Connect survey, we asked investors about key issues surrounding the market and Bond Connect, the market access scheme established by the China Foreign Exchange Trade System CFETS and Hong Kong Exchanges and Clearing HKEX.

This trading link, which mirrors an existing Stock Connect scheme, enables offshore investors to buy and sell the full gamut of bonds traded on China’s interbank market through Hong Kong.

It means that foreign investors do not need to set up an account on the Chinese mainland and can use their offshore banks to execute trades.

In the...

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