Will a Hong Kong-China 'bond connect' be next?

Will a Hong Kong-China 'bond connect' be next?
Logos of Hong Kong Exchanges and Clearing on a window door inside the trading hall.

The Hong Kong-Shanghai Stock Connect scheme had a lackluster start in late 2014, but by the beginning of April, it was deemed a roaring success.

Beijing has already announced that the trading of Shenzhen and Hong Kong shares will also be linked, so commentators are now speculating as to which asset class could be the next to benefit from connected trading with the special administrative region.

Some say it will be China's exchange-traded derivatives markets, which Beijing is keen to internationalize. The development of China's financial and commodities derivatives exchanges - such as the China Financial Futures Exchange - is an important policy objective.

Beijing wants to see more trading in derivatives contracts so that they can be benchmarks for financial risks, as well as enhance liquidity in the broader markets and ensure that assets are priced closer to global markets.

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