China’s bond-connect program with Hong Kong , giving offshore investors another way to access the mainland’s $10 trillion debt market, will start on July 3.The official announcement was made on Sunday in a joint statement between the People’s Bank of China and the Hong Kong Monetary Authority. The two also signed a memorandum of understanding on the cross-border supervisory cooperation, according to the statement posted on the PBOC website. It’s the latest step in China’s efforts to open up and integrate into the global financial system. Hong Kong Exchanges & Clearing Ltd. said separately late Friday that a launch ceremony was scheduled for Monday.Two Chinese policy banks -- the Agricultural Development Bank of China Ltd. and China Development Bank -- will issue bonds to offshore investors on Monday and Tuesday, respectively, according to earlier statements.The PBOC issued rules for the bond connect on June 21. About 85 percent of their money was limited to sovereign and policy bank securities.

Source: Economic Times July 02, 2017 09:11 UTC