Deepen the two-way opening of the bond market, clarify the participation of insurance funds in the "southbound bond connect".

Insurance funds' participation in the Bond Connect Southbound, which has attracted a lot of market attention, has officially been launched. It was recently learned from industry sources that relevant departments have clarified the calibers of the Southbound cooperation mechanism for insurance funds participating in the Mainland and Hong Kong bond markets, including asset classification, investment methods, trading mechanisms, and other contents. Currently, several insurance institutions have been approved to conduct Bond Connect Southbound investments and have successively completed the first trades. In the view of industry professionals, insurance funds' formal participation in the Bond Connect Southbound is a substantial positive development for both insurance companies and overseas bond markets: on the one hand, it helps enhance the global asset allocation capabilities of insurance institutions; on the other hand, the Hong Kong bond market will attract more incremental funds, and market liquidity and trading activity are expected to improve.