Beijing unveils policy enhancements to give ‘vitality’ to Hong Kong markets
The governor of China’s central bank says Beijing is set to increase capital allocation to the city to 800 billion yuan under the Bond Connect scheme
Mainland China’s foreign reserves would continue to increase asset allocation in Hong Kong, providing further momentum to the city’s capital market development, the governor of the People’s Bank of China (PBOC) said on Tuesday.
“This will give vitality to Hong Kong,” Pan said.
As a core measure to strengthen cross-border financial ties, Pan announced that the annual net investment quota under the Bond Connect scheme would be increased to 800 billion yuan (US$117.82 billion) from the current 500 billion yuan.
In a media briefing later on Tuesday, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man said the increase would allow more institutional investors on the mainland to buy into the city’s bond products.
“[This] will promote the development of the fixed-income market in Hong Kong and further strengthen the city as an international financial centre.”