China may have made it easier for foreign investors to access to its interbank bond market with the launch of its Bond Connect programme, but many remain frustrated about settlement issues and a lack of connectivity between onshore and offshore repo markets, an industry conference heard on Tuesday.
Introduced in July last year, the Bond Connect programme allows foreign investors to trade Chinese bonds without setting up an onshore account for the first time.
However, those trades are settled on a delivery-against-payment basis at China Central Depository and Clearing, a state-owned clearing house, making some investors nervous about the counterparty risk because the cash...
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