The Bond Connect program that kicked off on July 3 ended the day with more than CNY7 billion worth of mainland Chinese bonds traded by international investors. The long awaited cross-border trading scheme, which initially will give international investors access to China’s USD9 trillion bond market via Hong Kong Exchanges and Clearing (HKEX), marked a milestone in China’s further opening up of its capital account. It also marked a milestone for HKEX in expanding its products from stocks and commodities to bonds. Newly appointed Hong Kong Chief Executive Carrie Lam hosted the Bond Connect debut ceremony at the exchange just three days after she took office. “Bond Connect marks another new chapter of mutual market access between Hong Kong and the mainland,” Lam said. “It is an important milestone for the internationalization of the renminbi as it makes it easy for international investors to trade bonds in China. The new Bond Connect and the two stock connects enhance cross-border trading between Hong Kong and the mainland. This strengthens Hong Kong’s role as an international financial center.” The next step, she said, is to work on the launch of southbound trading to allow mainlanders to buy and sell bonds in Hong Kong. People’s Bank of China Deputy Governor Pan Gongsheng said the Bond Connect “shows the central government’s support for the Hong Kong market.” But southbound trading through Bond Connect would launch only when there is sufficient demand, he added. The first day’s trading saw 89 financial firms conduct 142 transactions worth CNY7.048 billion. The majority were buying orders, including 128 transactions worth CNY4.9 billion. The investors were mainly government agencies and banks including the Hong Kong Monetary Authority, ICBC, HSBC, Standard Chartered Bank, BNP Paribas, among others, the South China Morning Post reports.