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China Plans to Let $568 Billion Fund Tap Southbound Bond Connect

Source: Bloomberg

Currency & FXBanking & LiquidityCapital MarketsEmerging Markets

China plans to allow its $568 billion social security fund to purchase offshore bonds via a Hong Kong investment channel. The move is intended to increase institutional demand for yuan-denominated assets in Hong Kong, supporting the city’s role as an offshore yuan financial hub.

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