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Bloomberg Enhances China Southbound Bond Connect

Bloomberg and the China Foreign Exchange Trade System (CFETS) jointly announced that indicative prices from Hong Kong-based market makers who adopt Bloomberg Southbound Bond Connect solutions are now available in real-time for onshore investors to view on the CFETS bond trading platform. This will further facilitate transactions on the Southbound Bond Connect, improving price discovery and trading efficiency for onshore investors. Bloomberg is the first global trading solutions provider to offer indicative prices with CFETS for participants on Southbound Bond Connect.

Bank of China (Hong Kong) Limited is among the first group of market makers that have started to provide live streaming of prices using Bloomberg Southbound Bond Connect solutions.

“Since the launch of Southbound Bond Connect, market participants have shown strong interest and enthusiasm and we hope this new mechanism will provide more convenience for domestic investors to invest and trade global bonds,” said Lu Xiangqian, Deputy General Manager of CFETS. “We appreciate Bloomberg’s efforts to continuously improve the Southbound Bond Connect with us.”

Bing Li, Bloomberg

“We are proud to launch this new feature with CFETS and our dealer clients in just a month since the launch of Southbound Bond Connect. We are looking forward to onboarding more dealers to provide real-time prices, making bond trading on Southbound Bond Connect more transparent,” said Bing Li, Head of APAC at Bloomberg. “Bloomberg is committed to provide best-in-class data and technology for dealers and help them seize the opportunities of cross-border trading.”

Launched on September 24, 2021, the Southbound Bond Connect provides onshore investors an opportunity to diversify their investment portfolios to include overseas bonds. Bloomberg and CFETS jointly launched the Southbound Bond Connect solutions based on system connectivity between the two parties on the first trading day of Southbound Bond Connect. Eight out of the 13 designated dealers have been using Bloomberg Southbound Bond Connect to provide market-making services for onshore investors accessing offshore bond market.