Bond Connect Facilitates over USD$79B in Transactions in May


China’s Bond Connect initiative connecting the domestic debt market to offshore investors facilitated more than USD$79 billion in transactions in the month of May.

Bond Connect transactions totalled 505.9 billion yuan (approx. USD$79.26 billion) in May, for a daily trading volume of 28.1 billion yuan, according to data released by Bond Connect on 31 My.

Sovereign bonds and policy finance bonds were the most actively traded, accounting for 46% and 39% of the monthly trading volume respectively.

The month of May saw the addition of 61 new offshore institutional investors to Bond Connect, bringing the total number of participating institutions to 2563, hailing from 34 nations and regions around the world.

According to Bond Connect 78 out of the world’s top 100 asset management firms have completed registration to trade via the initiative.

May also saw the launch of “New Bond Information Connect,” (新债信息通), which was used to issue information on 130 debt instruments, including policy finance bonds, interbank certificates of deposit, medium-term notes, common financial bonds, enterprise bonds, tier-2 capital bonds, asset-backed securities and short-term financing notes.