China policy bank sells debt through Bond Connect

Agricultural Development Bank of China, China Development Bank show their support for country's latest connect scheme, but some foreign investors wary of extra currency risk.

Agricultural Development Bank of China ADBC became the first issuer on Monday to sell debt through China's new Bond Connect programme, which gives foreign investors direct access to the world’s third-largest bond market without the need for onshore accounts.

The move, another important milestone for Chinese finance, forms part of a broader effort by Beijing to promote the renminbi currency and open up the country’s capital markets to attract a wider range of foreign investor to continue funding the Chinese economy.

“The Bond Connect is an important step of the liberalisation of China’s domestic financial market, as China hopes to gain wider acceptance in...

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