国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Bumpy road ahead for bond connect

Updated: 2016-02-05 09:15

By Reuters in Hong Kong(HK Edition)

  Print Mail Large Medium  Small

Hong Kong's ambition to launch a bond connect program that links debt markets on the mainland and globally may not be realized so long as Beijing is fighting against capital outflows amid expectations for further yuan depreciation, analysts say.

Any connect program that allows both inbound and outbound investment will likely be a one-way street for outflows at present, as US interest rates, and the greenback, look poised to rise, they believe.

The Hong Kong stock exchange recently announced its strategic plan during 2016-18 to explore mutual market access with the mainland in the institutional cash bond market, after launching the landmark Shanghai-Hong Kong Stock Connect at the end of 2014.

However, a bond connect seems much more complicated as the majority of the mainland domestic bonds are traded in the interbank market instead of in the exchange.

In addition to technical barriers, analysts say a bond connect does not seem to be the priority for Beijing for now since it is trying to stabilize its sluggish economy and weakening currency.

Sufficient liquidity and low bond-yield levels on the mainland strengthened demand among domestic investors to seek higher returns in overseas markets, said a fixed-income analyst at a Chinese brokerage in Beijing. "However, China has been tightening controls on the capital account to ease fund outflow pressures. It seems the bond connect is not likely to be rolled out in the short term."

The mainland's central bank and commercial banks sold a net 629 billion yuan ($95.61 billion) worth of foreign exchange in December, nearly triple the amount in the previous month, amid growing capital outflows.

Beijing has stepped up efforts to ease outflow pressures in the past few months by introducing measures to restrict cross-border flows, including the suspension of new applications for the Renminbi Qualified Domestic Institutional Investor investment program and yuan account financing.

Beijing's latest move was to set a $5,000 limit for each premium payment transaction made in Hong Kong using UnionPay cards issued in the mainland, effective Thursday.

Foreign investors remain quite bearish on the yuan, especially after the Bank of Japan reduced interest rates to negative territory last week.

Reuters data on Monday showed riskier bets that only pay out if the yuan weakens to more extreme levels well above 7 per US dollar, past highs hit around Beijing's reference rate adjustment last August. On Thursday, the yuan was trading at 6.5776 per US dollar.

(HK Edition 02/05/2016 page8)

武邑县| 临漳县| 突泉县| 同江市| 集贤县| 娄烦县| 堆龙德庆县| 延寿县| 三都| 吉隆县| 平邑县| 栾城县| 凤山县| 松阳县| 秦安县| 伊川县| 伊吾县| 信阳市| 疏附县| 仙居县| 丹棱县| 大同县| 武穴市| 高陵县| 正镶白旗| 文昌市| 苗栗县| 海门市| 贺州市| 买车| 南安市| 三亚市| 读书| 友谊县| 乳山市| 三亚市| 弥勒县| 正定县| 苏州市| 于都县| 慈利县|