The continued two-way opening-up of the Chinese capital market has further fueled Standard Chartered's confidence in China, which will be translated into the bank's deepening participation in renminbi internationalization and expansion of its offshore finance, wealth management and outbound corporate businesses, said the bank's top executives.
Bill Winters, group chief executive of Standard Chartered, cited the recently announced upgrade measures for Bond Connect as the latest step forward regarding the two-way opening-up. This signals a more mature integration of onshore and offshore financial assets, ranging from government bonds to credit products and now gold, he said.
The People's Bank of China will increase the allocation of national foreign exchange reserve assets in Hong Kong while expanding the Bond Connect program as part of a broader package of measures to strengthen the city's role as an international financial center, PBOC Governor Pan Gongsheng said at a summit held in Hong Kong in early July.
The PBOC will also expand the scale and scope of the Bond Connect southbound channel, which facilitates mainland investors to invest in bonds in Hong Kong, by raising its annual net investment quota to 800 billion yuan ($118 billion) from 500 billion yuan, broadening the range of products available under the scheme, and extending its reach to Macao's bond market, he added.
