Bond Connect seen boosting fund inflows

Renminbi-denominated bonds will become one of the preferred investment options for international investors as China now offers a channel for offshore investors to access local notes, potentially boosting fund inflows in the future, said experts.

The Bond Connect, which was launched in July in Hong Kong, is expected to funnel hundreds of billions of dollars into the Chinese mainland's $10 trillion interbank bond market, said Zong Liang, a chief researcher at Bank of China, in a research note.

Qualified overseas investors now trade in the mainland's treasury bonds, local government bonds, institutional bank bonds and commercial bank bonds.