Bloomberg Launches Access Channels for China Bond Market

Bloomberg, along with the China Foreign Exchange Trade System (CFETS), has launched access channels to China’s interbank bond market (CIBM). This will allow global investors to trade onshore Chinese bonds via the Bloomberg Terminal.

Bloomberg with its Chinese partner has made the announcement today at the China Bond Market International Forum. With this, Bloomberg Terminal clients can access both CIBM Direct and Bond Connect to access China’s market as an offshore investor.

Commenting on this development, Mary Schapiro, vice chair for global public policy and special advisor to the founder and chairman of Bloomberg, said: “For some time now, we have been working closely with the People’s Bank of China, CFETS, Hong Kong Exchange and other parties to advance China’s bond market development and facilitate greater investor access."

“With these two new access channels, we expect the appetite to seek yield, Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, and alpha in China’s $12 trillion bond market to grow further. As China continues to deepen its financial reform, China’s bond market is an opportunity many investors can no longer ignore.”

Bloomberg also integrated its voice confirmation feature (VCON) with CFETS which will allow the offshore investors to send trade details directly to their corresponding onshore agent banks. In addition, onshore agent banks can send pre-filled messages to their offshore clients who are using Bloomberg’s VCON to register trades on CFETS.

For investors using Bond Connect, Bloomberg has opened a new access point through its Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term management system (TSOX) integrating with CFETS.

“The global financial community has been looking forward to these additional trading solutions and channels from Bloomberg,” said Tu Hong, Chief Investment Officer, Bank of Communications. “These trading solutions will not only provide additional avenues for foreign investors but will also simplify the workflow for market participants, creating maximum efficiencies.”

Global Expansion

Earlier this month, Bloomberg affiliate Bloomberg Trading Facility Limited secured approval from the Dutch Authority for the Financial Markets (AFM) to operate a multilateral trading facility (MTF) in the country. Bloomberg is also trying to expand in the South East Asian market as last year it partnered with Bankers Association of the Philippines to boost FX trading in the region.