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Print edition: 2017-01-08
HKEx says connecting China's bond markets would aid offshore yuan liquidity
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A cross-border platform linking China's onshore and offshore debt markets could boost offshore yuan liquidity, Hong Kong's stock exchange said in a report posted on its website on Friday. Such a "Bond Connect" would expand an existing scheme by allowing foreign institutions to use yuan bonds held offshore as collateral in the onshore repo market, helping them raise funds and channelling liquidity from the onshore to offshore market.
Since 2015, foreign institutions have been allowed to conduct bond repos in the mainland interbank market but they can only use onshore bonds as collateral.
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No content from Business Recorder shall be reproduced, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium.
Business Recorder shall not be responsible or held liable for any error of fact, opinion or recommendation and also for any loss, financial or otherwise, resulting from business or trade or speculation conducted, or investments made, on the basis of the information posted here. Nor shall Business Recorder be held liable for any actions taken in consequence." >Copyright Reuters, 2017