2017 marks the 20th anniversary of the establishment of China's inter-bank bond market.
Since 2016, Chinese regulators continue to encourage bond market expansion and issuance facilitation, increase support and encouragement for the development of the green bond market, and further promote the opening up of the bond market. The major trends will continue in 2017. The issuance volume of China's bond market will Continue to grow steadily. Of noteworthy are the development of asset securitization in PPP projects, the launch of high-yielding bonds, the expansion of Panda bonds, and the enhancement of the issuance threshold for bond issuers in real estate and overcapacity industries.
China Opens Its Bond Market to International Investors., July 3rd, 2017, to coincide with the 20th anniversary of the British handing over control of Hong Kong, a bond-trading link between mainland China and Hong Kong kicked off. Bond Connect is the latest market link between Hong Kong, a global financial center, and mainland China, where authorities have slowly been lowering barriers to foreign investments in recent years.
The size of China's bond market cannot be underestimated. However, the breadth and depth of opening to the outside world are not enough. There is still a gap between China and other developed countries and there is still a gap between the financial requirements of big powers that are built to match China's economic status.