Will Bond Connect hurt the CNH market?
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.
Opinions vary widely about the likely impact of the upcoming Bond Connect scheme, which will allow international investors to trade onshore bonds in Hong Kong.
For instance, rating agency Moody’s takes the view that the trading link, expected to go live in July, will prove very attractive and ultimately marginalise the offshore renminbi bond (CNH, or dim sum) market.
The firm said in a research note yesterday that international investors were more likely to invest onshore becaus…
Please sign in or register
for free access to 1 article per month from AsianInvestor’s content and archives of over 16,000 articles.
¬ Haymarket Media Limited. All rights reserved.