Foreign institutions are optimistic about new opportunities for interconnection of the Mainland and Hong Kong Financial Market

Xinhua News Agency, Hong Kong, July 8th (Reporter Lu Yun and Li Baitao) The introduction of a new policy made the French Lu Junyi strongly feel that setting up the company in Hong Kong, China is a "correct choice".

In October last year, Xinxi Asset Management Company, joint venture by France and Belgium, obtained a business license in Hong Kong, and Lu Junyi served as CEO. The company purchases mainland stocks and bonds through interconnected mechanisms such as "Shanghai -Hong Kong Stock Connect" and "Bond Connect" to help European investors share China's development opportunities.

"It's important to enter the Chinese market. This is why we choose to set up a company in Hong Kong. Through the interconnection system arrangement, we can buy Chinese bonds and stocks every day, which greatly increases liquidity." Lu Junyi said.

Recently, the Mainland and Hong Kong financial market interconnection mechanism has expanded. The interconnection of the interest rate exchange market in the Mainland (referred to as "swap") will be launched in 6 months. This means that overseas investors can purchase financial derivatives in the Chinese market through this mechanism to meet the needs of their management interest rate risks.

"'Surgery' can help us hedge risk. We also plan to launch derivative products for investors to choose from in the future." Lu Junyi said.

On the day of the release of "SCT", the transaction open index fund (ETF) was also officially included in the interconnection mechanism of the mainland and the Hong Kong stock market. From stocks to bonds to derivatives, the interconnection of the Mainland and Hong Kong financial markets is continuously deepened, and more and more foreign institutions have taken the express train for China's development. The differentiated demand of overseas institutions has also accelerated the innovation and development of the financial market in the Mainland, enhanced market liquidity, and formed a virtuous circle.

Data show that as of May 2022, the number of bonds such as "bonds" and other channels holding bonds was about 3.7 trillion yuan, which increased more than 3 times compared to the number of "bonds"; The 31 billion yuan in July of the year increased to 675 billion yuan in May 2022.

From the high -rise building (information picture) of the Hong Kong Island Central Financial Center from the Gulf of Victoria. Xinhua News Agency reporter Li Peng

Hong Kong's unique advantages of the motherland and Unicom world have attracted more and more foreign financial institutions to set up a global or regional headquarters here. China's continuous expansion and opening up have also strengthened their long -term rooting in Hong Kong's confidence.

Huang Jiacheng, director of the Asia -Pacific region of Global Investment Management Corporation, told reporters that with the facilitation of market access, the types of institutions investing in Chinese assets have also increased. , Commercial banks and pension funds.

Huang Jiacheng said that the correlation between the RMB bonds in the shore and the Chinese stock market and other major bond markets is low, which provides good diversified investment opportunities for global investors; In other markets, this also provides investors with unique value.

"In fact, overseas investors are still low in the shore bonds. We have long been optimistic about global funds brought by the internationalization of RMB." Huang Jiacheng said.

China is the world's second largest bond market. According to central bank data, as of the end of 2021, overseas investors holding RMB bonds have reached 4 trillion yuan, accounting for about 3.5%of the total number of custody of the market.

For international investors, this means broad market space. Lu Junyi said that European investors' demand for RMB assets is very large. With the continuous internationalization of the renminbi, the company will increase its RMB bonds, especially green bonds in the next few years. "China pays attention to environmental protection and energy saving carbon reduction, which is very suitable for our investment philosophy. We will buy more green bonds."

Chen Maobo, director of the Financial Secretary of the Hong Kong Special Administrative Region Government, previously pointed out that through close connections with the Mainland, Hong Kong can drive global funds into the carbon market in the Mainland. The SAR Government will seize opportunities such as the national "14th Five -Year Plan", the development of the Guangdong -Hong Kong -Macao Greater Bay Area, and the "Belt and Road" to promote Hong Kong to become a green and sustainable financial hub.

Yu Weiwen, President of the Hong Kong Monetary Administration, said that "exchange" will have a good synergistic effect with the "bond", further enhance the depth and breadth of the mainland financial market to the outside world, and will also create greater opportunities for Hong Kong financial institutions and enhance Hong Kong as a role in Hong Kong. The status of the International Risk Management Center.

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