Bond Connect's southbound opening to favour green bonds

Hong Kong and China's plan to open southbound trading via the Bond Connect scheme in the summer is set to entice China pension funds and insurers to target ESG and green bonds in the territory. The plan to expand the trading link to include southbound flows should take place in early July. It would finally make the scheme a two-way flow, similar to the Stock Connect Scheme, offering onshore Chinese investors another avenue to build exposure to overseas fixed income. While Hong K…