HONG KONG: Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue said on Tuesday that Hong Kong was considering 'deepening' some of the investment connection schemes between the city and mainland China.
Yue told the HSBC Global Investment Summit in Hong Kong there was capacity for greater southbound activity from Chinese investors into Hong Kong's financial markets.
Northbound trading in the connect schemes allows offshore investors to buy China-listed products, while southbound is designed for Chinese-based investors to buy into Hong Kong products.
"Think about the Bond Connect. Currently, it's very limited, only Chinese banks can use their southbound Wealth Connect," Yue told the conference.
"But what if the eligible investor classes are extended to for example, asset managers in China or importantly insurance companies or pension funds in China in future, there could be a very big potential in money for global bonds through the Hong Kong platform." - Reuters
