China's Hong Kong Bond Link Gets Underway to Muted Reaction
- First day’s trading seems muted, but authorities see big step
- Benchmark 10-year government bond yield rose to 3.60 percent
Norman Chan, chief executive of the Hong Kong Monetary Authority, left, and Pan Gongsheng, deputy governor of the People's Bank of China, during the launch ceremony of the China-Hong Kong Bond Connect at the Hong Kong Stock Exchange on July 3.
Photographer: Anthony Kwan/BloombergTrading on China’s new bond link to the rest of the world started on Monday, with little in the way of a market reaction.
First-day turnover on the system was 7 billion yuan ($1 billion), 4.9 billion yuan of which came from bid requests, according to a statement posted on the website of the National Interbank Funding Center. Some 130 new investors registered with the program as it started, Julien Martin, head of fixed income and currency product development at Hong Kong Exchanges & Clearing Ltd. said at an investor forum. The 10-year government debt yield rose just three basis points to 3.60 percent.