China's Bond Connect trade up sharply as yuan strengthens

Shanghai

TRADING by offshore investors in a type of short-term debt through China's Bond Connect scheme rose sharply last week, suggesting that a strengthening yuan may be helping the two-month-old programme pick up steam after a slow start.

The total settlement value of Bond Connect transactions received by the Shanghai Clearing House, one of China's two bond settlement systems, nearly quadrupled in the week of Aug 21 to 11.8 billion yuan (S$2.4 billion) from the week before, data from the Shanghai Clearing House showed on Tuesday.