Foreign institutional investors are making increasing use of China’s Bond Connect initiative (债券通) to gain access to the Chinese debt market.
The month of February saw 62 new foreign institutional investors enter the Chinese debt market via Bond Connect, according to data from Bond Connect Company Limited.
As of the end of February at total of 1279 foreign institutional investors from 31 countries participate in the Bond Connect scheme, while 66 of the world’s top 100 asset management companies have completed Bond Connect filing.
Bond Connect facilitated the completion of 3608 transaction in February, worth a total of 285.2 billion yuan, for a daily average transaction value of 14.3 billion.
Policy financial bonds, sovereign bonds and interbank certificates of deposit remain the preferred products for investors, accounting for 45%, 36% and 17% of transactions respectively. 7 to 10 year bonds accounted for 52% of bond transactions that month.