CFETS and HKEX establish JV for Bond Connect

HONG KONG - China Foreign Exchange Trade System (CFETS) and Hong Kong Exchanges and Clearing Limited (HKEX) have announced formation of a joint venture company in Hong Kong, Bond Connect Company Limited (BCCL), to support Bond Connect related trading services.

Bond Connect is a new mutual market access scheme that will allow investors from Mainland China and overseas to trade in each other's bond markets through a market infrastructure linkage in Hong Kong, as announced by the People's Bank of China (PBC) and Hong Kong Monetary Authority (HKMA) on May 16.
As announced previously, Northbound trading – international investors accessing the China Interbank Bond Market (CIBM) – will begin first, while Southbound trading will be explored at a later stage.
BCCL will support and assist admission and registration for Northbound investors, and liaise closely with the global access platforms through which Northbound investors will trade CIBM instruments, the announcement said. 
CFETS and its subsidiary company own 60% of BCCL, while 40% is owned by HKEX.  BCCL will actively proceed with related work under the guidance of PBC and HKMA.  www.hkex.com.hk (ATI).