Friday, 14/06/2024
   

VNBA Secretary General received and talked with Delegation from the Bond Connect Company Limited

On May 28, 2024, Bond Connect Company Limited (BCCL) delegation headed by Mr. Tony Wang, General Manager has come and discussed with Vietnam Banks Association (VNBA) for updating information relating to China fixed income market.

On May 28, 2024, Bond Connect Company Limited (BCCL) delegation headed by Mr. Tony Wang, General Manager with Ms Jodie Hu - Head of Product Development and Ms Nina Lei - Assistant Vice President has come and discussed with Vietnam Banks Association (VNBA) for updating information relating to China fixed income market.

VNBA Vice Chairman cum Secretary General Nguyen Quoc Hung and representatives from VNBA Standing Agency’s units have received and talked with BCCL delegation.

Secretary General
VNBA Secretary General Nguyen Quoc Hung 

Mr. Tony Wang has introduced to the VNBA the process of establishment and development of BCCL and its main services such as (i) Bond Connect that is a breakthrough in China mutual market access, allowing investors from Mainland China and overseas to trade in each other's bond markets through a market infrastructure linkage in Hong Kong; (ii) Swap connect that has the same mechanism as Bond connect but focuses on the derivatives market; (iii)  Other investment channels to serve accessing other international bond markets of the Chinese interbank bond market… Currently, there are more than 800 investors using BCCL’s services.

Mr Wang has talked about the development process, investment trends as well as the globalization prospects of the China bond market. China bond market is the 2nd largest in the world with the total debt securities outstanding reached nearly 22 trillion USD (Q3.2023), accounted for 123% GDP. According to him, the China bond market has a relatively low correlation to US and global markets because China and the US have different economic structure, stages of development and policy environments. That’s why, China bond market is relatively low volatility compared to US markets. Despite the recent inverted yield curve between China and the US, the foreign inflow to China bond market is resilient.

BCCL General Manager Tony Wang
BCCL General Manager Tony Wang

Mr. Wang wished that BCCL would become a focal point to connect Vietnamese investors to participate in China bond markets.

VNBA Secretary General Nguyen Quoc Hung highly appreciated the BCCL General Manager’s sharing on China bond market. Regarding on Vietnam Banking system, he stressed that Vietnamese credit institutions are currently under restructuring process, most of them are steadily growing and evolving, meeting the international operational standards. The system now consists of four state-owned commercial banks, 31 joint-stock commercial banks, 02 joint-venture banks, 02 policy banks; 09 foreign banks, 30 foreign banks’ branches; 16 finance companies, 10 financial leasing companies, 1178 people’s credit funds, 04 micro-finance institutions… Total chartered capital of the system is more than 1 trillion VND and total asset of 20 trillion VND.

VNBA Secretary General received and talked with Delegation from the Bond Connect Company Limited
The meeting view

In addition, Dr. Nguyen Quoc Hung also talked on the strong and rapid digital transformation of banking system in Vietnam;  the participation of Vietnamese credit institutions on markets of Government bonds, corporate bonds and municipal bonds. He also said that VNBA would consider to promote BCCL information and its services to member organizations and do hope that the mutual cooperation between the two sides should be enhanced.

Bond Connect Company Limited (BCCL) is a joint venture established by China Foreign Exchange Trade System (National Interbank Funding Center) (CFETS) and Hong Kong Exchanges and Clearing Limited (HKEX) to support Bond Connect related services. Bond Connect is a breakthrough in China mutual market access, allowing investors from Mainland China and overseas to trade in each other's bond markets through a market infrastructure linkage in Hong Kong. Northbound trading commenced on 3 July 2017, allowing international investors to access the China Interbank Bond Market (CIBM), while Southbound trading will be explored at a later stage.

Established in Hong Kong in 2017, BCCL supports the admission and registration of Northbound investors, liaises closely with the Recognised Access Platforms through which international investors are able to trade CIBM instruments, and conducts investor education activities in relation to Bond Connect.

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