Hong Kong Financial Secretary Paul Chan Mo-po said today that Bond Connect has become the primary channel for overseas investors to access China's mainland bond market. As of the end of June, foreign investors held more than RMB 3 trillion worth of Chinese bonds—nearly three times the amount held when Bond Connect was launched nine years ago.

Chan made the remarks during the listing ceremony of five-year Chinese government bond futures, which debuted on the Hong Kong Stock Exchange this morning.

He noted that geopolitical tensions and an increasingly uncertain global market environment have driven stronger demand among both domestic and international investors for long-term renminbi (RMB)-denominated assets. Bond Connect has become the dominant access channel for overseas investors, accounting for approximately two-thirds of total trading volume in the mainland bond market.

Chan also pointed out that China's 15th Five-Year Plan explicitly calls for accelerating the development of a strong financial sector. He referenced remarks by Chinese President Xi Jinping, who stated that a financially powerful nation should possess several key characteristics, including a strong currency that is widely used in international trade, investment, and foreign exchange markets, and one that serves as a global reserve currency.

According to Chan, the continued internationalization of the RMB requires a robust offshore payment and settlement system. Hong Kong has long served as an efficient offshore RMB hub and has established a solid foundation in four key areas:

• A stable offshore RMB liquidity pool;

• An efficient RMB clearing and settlement system;

• A continuously expanding dim sum bond market (RMB-denominated bonds issued in Hong Kong); and

• The benchmark effect created by China's issuance of RMB-denominated government bonds in Hong Kong.

Chan added that while Hong Kong continues to strengthen its position as an international financial center, it is also pursuing greater diversification. Beyond serving as a financing hub, Hong Kong aims to become a pricing center, risk management center, and asset allocation center.

Bond Connect is a cross-border investment scheme linking the bond markets of mainland China and Hong Kong. It consists of Northbound Trading and Southbound Trading, allowing both domestic and international investors to trade bonds across the two markets.