Despite the introduction of Bond Connect last year, Beijing still has hurdles to clear if it is to attract more meaningful international flows to its debt market.
China has reportedly reopened the two schemes. This could mean Ucits funds are close to Bond Connect approval and that QDII is set to return, says Andy Seaman of Stratton Street.
Global investor monitoring and testing for the new China access programme is just beginning and early trading has largely relied on Chinese banks. But it's a decent start.
China and Hong Kong need to get their act together if Bond Connect is going to buck a run of disappointing trading links. Investors need to be able to hedge interest rate risk onshore.
China's central bank has clarified operational details of the market access scheme, through which Standard Chartered expects strong early trading in July.
Rating agency Moody’s says offshore renminbi bonds will be marginalised by the imminent China-Hong Kong trading link. Andy Seaman of Stratton Street Capital disagrees.