China’s bond market opening for foreigners will unleash massive demand, HKEx CEO says

Almaty. July 1. Silkroadnews – China’s fixed income bond market opening for foreigners will unleash a massive demand for the bonds, Charles Li, the chief executive officer of the company operating the Hong Kong’s stock exchange (HKEx), believes.
“China’s move to open up its fixed income market to foreign investors will eventually unleash “massive” demand for the mainland’s bonds, the chief executive of the company that operates Hong Kong's stock exchange, told CNBC on Friday. Authorities also won’t cap the amount that foreigners can invest in China”, American TV channel CNBC reports.
In his turn, Tradeweb Markets CEO Lee Olesky said the introduction of electronic bond trading will raise the price transparency.
“The value of electronic trading is being able to instantly see on your screens the pricing in the market, essentially click a button and transact. Previously, before the introduction of electronic trading, both in general, and in specific here in China, this was a market that was completely over the phone. It was a voice transaction model that did not have price transparency”, L. Olesky said.
According to forecast by UBS Asset Management, China’s bond market is expected to double compared to the current US$9 trillion over the next five years, overtaking Japan to become the world’s second largest behind the US. With this, the local government bond market will grow to more than US$3 trillion in the next three years from the current US$1 trillion.