Overview and background
In the past decades, China's economy and government have
been pushing ahead to further liberalize the Chinese financial
sector, especially in terms of current trade tensions with the
U.S.
China has been actively developing its capital markets and
further opening-up to foreign investors aiming to connect Chinese
capital markets with the rest of the world. Historically,
China's influence in global bond markets has not been matched
by its market size. Tight controls on forex conversion and
cross-border capital flows have excluded the full participation of
foreign investors. However, another milestone in the long-term
liberalization process of the Chinese bond markets is marked by the
launch of a mutual market access scheme, the Bond Connect Scheme
(Bond Connect), between mainland China and Hong Kong in July 2017.
Bond Connect, showing China's determination to gradually open
up its market, holds significant opportunities for
