08.22.2019

Deutsche Bank Top Foreign Bank For China’s Bond Connect

Onshore bond trading volume in China surged in July, making Deutsche Bank the top foreign bank by trading volume for China’s Bond Connect scheme.

Bond Connect is China’s mechanism for enabling foreign investors to access China’s 13 trillion US dollar onshore bond market – the world’s third largest.

In July, offshore institutions net purchased bonds for 8.84 billion US dollars (equivalent to 62 billion renminbi). Foreign investors now hold 2.25 percent of onshore bonds.

Jerry Li, Head of Greater China Local Markets, said: “We have actively marketed the China onshore bond market to foreign institutional investors, promoting this year’s global index inclusion and our onshore capabilities to help global investors access this enormous market.”

“Ranking No. 1 for onshore bond trading volumes shows we have achieved significant momentum in renminbi markets, which we will continue to build on,” Li added.

Since the Bond Connect scheme was launched two years ago, more and more foreign investors are joining. In July, 96 new accounts were added, taking the total number of foreign institutional investors to 1,134 by the end of the month.

“We expect foreign inflows into renminbi-denominated bonds to continue to rise in the coming months on the back of further renminbi bond index inclusion decisions and continued opening up measurements. Our analysts forecast an additional 120 billion US dollars to flow into onshore bonds in the next few years,” Li concluded.

Source: Deutsche Bank

Related articles

  1. Electronic FX trading has increased as customers want price transparency and an automated workflow.

  2. Trading Europe From ‘Across the Pond’

    The phase-in by EMMI occurred gradually to minimise operational and technological risks for panel banks.

  3. Fintech exec says regulators will at some point want to know what volume is traded.

  4. The bank failed to submit complete and accurate returns to the UK Prudential Regulation Authority.

  5. How APIs are Changing the FinTech Narrative

    The fund has made nine new fintech investments, four follow-ons and had one exit.