SHANGHAI May 5 China has started accepting
applications from bond market makers seeking clearance to
participate in a bond connect scheme with Hong Kong, three
sources with direct knowledge of the matter said on Friday.
The China Foreign Exchange Trade System (CFETS), which is
supervised by the People's Bank of China, announced the step
during a promotional event in Shanghai, the sources said.
Reuters reported on Tuesday that Hong Kong and Chinese
regulators were set to formally unveil a long-awaited scheme to
connect China's $8 trillion bond market with overseas investors
in July, with the launch expected in the Autumn.
Plans for a "Bond Connect" programme have been percolating
since Beijing launched a scheme allowing two-way trading between
the Hong Kong and Shanghai stock markets in 2014.
One of the three sources said qualifications for foreign
institutional investors to participate in the bond connect
scheme would be similar to the rules released by the central
bank in February 2016, when China further opened up its domestic
interbank bond market to overseas investors.
Reuters requested a comment from CFETS on the latest
development, but there was no immediate response.
(Reporting by Ivy Lv and John Ruwitch; Editing by Simon