FINANCE

Exclusive: Bond Connect Trading of Offshore Yuan Bonds Won’t Affect QDII Quotas

By Ding Feng, Xia Yining, Quan Yue and Qing Na

Published: Sep. 15, 2025 7:52 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Proceeding with the Bond Connect program's expansion without using new participants’ QDII quotas would broaden the investor base, analysts said.

For four types of institutions set to join the southbound leg of China’s Bond Connect program, purchases of offshore yuan-denominated bonds will be allowed without using their Qualified Domestic Institutional Investor (QDII) quotas, Caixin has learned.

Under a planned expansion of the program, Chinese mainland-based securities, insurance, mutual fund and wealth management firms will be allowed to invest in the Hong Kong bond market through the connect program, the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority jointly announced in July.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Four types of mainland Chinese financial institutions can soon buy offshore yuan bonds via the southbound Bond Connect without using QDII quotas.
The expanded program is set to begin trial operations by year-end 2024, with further expansion decisions expected by mid-2026.
The State Administration of Foreign Exchange has approved $170.9 billion in QDII quotas for nearly 200 institutions.

AI generated, for reference only

Who’s Who

Shenwan Hongyuan Securities Co. Ltd.: Analysts at **Shenwan Hongyuan Securities Co. Ltd.** wrote a report in July stating that expanding the Bond Connect program without using new participants' Qualified Domestic Institutional Investor (QDII) quotas would broaden the investor base, enhance market liquidity, and promote the internationalization of the yuan.

AI generated, for reference only