[Bond Day Commentary] 20170503 Bond Pass VS Interbank Mode

The “bond-to-bond” plan will further explore the open bond market and help maintain the status of Hong Kong’s international financial center.

In the short term, Since the official has not disclosed the specific structure of the “bond pass”, the relevant details need to be confirmed and further analysis. How to coordinate with the existing open mechanism is also worthy of attention (from the current available data, compared with the interbank model, bond innovation The point is to introduce retail investors and simplify the way of participation);

In the medium and long term, It is expected to bring incremental funds to the domestic bond market, optimize existing investor structure, and enrich market investment strategies.