HKMA: 13 financial institutions designated as market makers for Southbound Trading

The Hong Kong Monetary Authority (HKMA) announced on Friday (Sept. 17) that it has designated 13 financial institutions as market makers for Southbound Trading under Bond Connect (Southbound Trading).

The 13 financial institutions are listed as follows: Agricultural Bank of China Limited, Hong Kong Branch; Bank of China (Hong Kong) Limited; Bank of Communications Co., Ltd., Hong Kong Branch; BNP Paribas, Hong Kong Branch; China CITIC Bank International Limited; China Construction Bank (Asia) Corporation Limited; Citigroup Global Markets Asia Limited; Credit Agricole Corporate and Investment Bank; The Hongkong and Shanghai Banking Corporation Limited; Industrial and Commercial Bank of China (Asia) Limited; J.P. Morgan Securities (Asia Pacific) Limited; Mizuho Securities Asia Limited; Standard Chartered Bank (Hong Kong) Limited.

Having regard to the arrangement for Northbound Trading under Bond Connect, the designation of active financial institutions in the Hong Kong bond market as market makers will be conducive to the smooth operation and orderly trading of Southbound Trading.

The aforementioned 13 designated market makers were selected following an HKMA internal evaluation process. The selection of Southbound Trading designated market makers was based on several criteria, including certain basic conditions such as licenses for carrying on relevant activities, adequate internal control systems, and regulatory compliance; and other factors including the financial institutions' activities in the Hong Kong bond market, their business presence in Hong Kong, counterparty network with Mainland financial institutions, etc.

The HKMA will review the list of Southbound Trading designated market makers and evaluate the need for enhancement and expansion as and when appropriate.