Bond Connect is a mutual market access mechanism that enables onshore and offshore investors to trade eligible bonds in the Mainland and Hong Kong bond markets through connectivity between the financial market infrastructures of the two markets.
Under Northbound, overseas investors may access, settle and hold bonds in the China interbank bond market through the cross-border connectivity arrangement between SHCH and the Central Moneymarkets Unit (CMU) operated by the Hong Kong Monetary Authority.
Under Southbound, through the cross-border connectivity arrangement with the CMU, SHCH provides custody and settlement services for a range of offshore bond products—including government bonds and central bank bills—issued outside Mainland traded in the Hong Kong bond market.
