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Bond Connect, which is about to be "opened to traffic" for the fifth anniversary, received a "birthday gift" from the People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange on May 27 this year in advance: foreign investors who have been allowed to enter the interbank bond market Institutional investors can invest in the exchange bond market directly or through interconnection.
This is another major step in further promoting the institutional opening of China's bond market, and it is a further deepening of Bond Connect, an important innovative mechanism for opening up the bond market that was launched five years ago.For foreign investors to invest in China's bond market, meet their broader asset allocation needs, improve a diversified investor team, improve the liquidity and stability of the bond market, build a high-level financial opening pattern that requires high-quality development, and improve financial The international competitiveness of the market is of great significance.
Recalling the past, over the years, my country's bond market has made continuous positive progress in opening up to the outside world.According to data recently released by the China Securities Regulatory Commission, as of the end of April 2022, the balance of China's bond market was 138.2 trillion yuan, ranking second in the world since 2016.
With the continuous growth and development of Bond Connect, the scale of global investors participating in the Chinese bond market has shown explosive growth in the past five years.Statistics show that as of the end of April this year, a total of 1,035 foreign institutional investors had entered the Chinese bond market, with a total bond holdings of 3.9 trillion yuan, an increase of 225% from the end of 2017.
At the same time, JPMorgan Chase, Bloomberg and FTSE Russell have successively included Chinese bonds in their global indices.This is a "vote of confidence" in the development of China's bond market.
In the achievement of these achievements, "Bond Connect" has played an important role.
The results are gratifying, but there is still room to further facilitate foreign institutional investors to invest in the Chinese bond market.The joint announcement by the three departments to support foreign institutional investors to invest in the exchange bond market directly or through interconnection is the best interpretation of this.
Over the past five years, Bond Connect has witnessed the opening and development of China's bond market and the process of China's bond market becoming the second largest in the world.The release and implementation of measures to support foreign institutional investors to invest in the exchange bond market directly or through interconnection means that the pace of opening up China's bond market is still moving forward, allowing more foreign institutional investors to share the results of China's bond market. fruitful results.
From a deeper perspective, the further opening of the bond market reflects the growing international attractiveness and influence of my country's financial market.We have seen that in recent years, my country's financial market opening has been deepening, and relevant financial regulatory authorities have introduced many measures to open up the financial industry, which is also the confidence of international investors to continue to increase their holdings of Chinese assets.
(Editor in charge: Tian Yunfei)
