Ford test drives China's ABS via Bond Connect

Foreign investment continues to accelerate as the government rolls out new measures, but many still fear making a leap into the unknown.

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.

One year after the mutual recognition scheme launched, FinanceAsia is conducting a major survey on its impact and the way forward.

Despite the introduction of Bond Connect last year, Beijing still has hurdles to clear if it is to attract more meaningful foreign participation to its debt market.

Even after Bond Connect, simplified rules and better hedging tools are needed for more meaningful foreign participation in the $9 trillion market, a conference hears.

China and Hong Kong need to get their act together if Bond Connect is going to buck a run of disappointing trading links. Investors need to be able to hedge interest rate risk onshore.