Year-ender: Major financial events in 2021
China launches Southbound Bond Connect
China officially launched the Southbound Trading channel of its Bond Connect program on Sept 24, a new program allows bond purchases in Hong Kong's offshore market.
Capital net outflows via the trading scheme are equivalent to as much as 500 billion yuan, with up to 20 billion yuan daily.
The Southbound Connect channels the cross-border capital flows between the mainland and Hong Kong, and is regarded as a significant step for China to further liberalize its capital market, experts said.
The opening of southbound trading also indicates the central government's strong support for Hong Kong's status as an international financial center, Pan Gongsheng, deputy governor of the central bank, said at the opening ceremony.
