(Yicai Global) June 28 -- Hong Kong media published a list of 20 Bond Connect market makers yesterday after the People's Bank of China announced interim measures for the scheme's administration and expect Bond Connect will officially open on or after July 3.
Some 14 well-known Chinese commercial banks and securities traders made the list, as did six international groups -- Standard Chartered PLC [LSE:STAN], HSBC Holdings PLC [LSE:HSBA], Deutsche Bank AG [FWB:DBK], DBS Bank [SGX:D05], BNP Paribas SA [EURONEXT:BNP] and Citibank.
The number of foreign institutions on the list is far higher than expected, Xie Yaxhuan, chief macro analyst with China Merchants Securities. "This shows the positive attitude of relevant departments toward the opening up of the bond market."
The finalization of the market makers list indicates that the official rollout of the Northbound Connect within the Bond Connect mechanism is not far off, he said.
The opening of Bond Connect will boost onshore yuan bonds' chances of being incorporated into mainstream international indexes, making it very likely that international investors will gradually increase their holdings of yuan bonds, Xie said.
Overseas investors using Northbound Connect will have access to all the bonds that can be traded on the interbank market, per the interim measures announced by PBOC on June 21.