Regional Head of Securities Services for Greater China and Northeast Asia
The early signs in the latest “Connect” undertaking appear promising with Rmb7 billion of mainland bonds traded on the first day alone(1), and around 140 investors registered to use the access channel. These are unprecedented transactional volumes in comparison to previous market openings in China, and while trading activity has fallen slightly since, it remains stable.
Bond Connect: Investors jump at the opportunity
The development continues…
Conclusion: A good start and much more to come
Initial interest in Bond Connect has been strong and with more key developments still to come in 2017 and beyond, we expect interest to convert into significant volume growth very quickly. Leveraging the invaluable experience of the Stock Connect, this project has begun with an unprecedented level of regulatory clarity and engagement. With leading players in both Europe and China entirely clear on what needs to be done, we should expect UCITS regulators to be able to move quickly towards approval of the Bond Connect for funds under their supervision.
A month into trading now, we have indeed witnessed the successful launch of a unique access mechanism for China; the global investment community has warmly embraced this development, and Standard Chartered remains front and centre in continuing to contribute to its success.
Barnaby Nelson is Regional Head of Securities Services, Greater China and North East Asia, for Transaction Banking at Standard Chartered.In this role, he leads the end-to-end delivery of Standard Chartered Securities Services proposition in several of the Bank’s largest custody businesses across product development, sales, client servicing and operations.
Barnaby is also responsible for driving the business agenda amongst institutional investor and financial intermediary clients across North East Asia and Greater China, with a focus on supporting clients’ growth aspirations across Asia, Africa and the Middle East.
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