Also Executes Its First Trade Under the Programme
HONG KONG – Bank of America, N. A. Shanghai Branch (BANA Shanghai) announced today that it has been named a market maker for Bond Connect between mainland China and Hong Kong, and that it has completed its first client trade in China’s interbank bond market through the programme.
The first phase of Bond Connect was launched in July 2017. It allows overseas institutional investors to invest in China’s interbank bond market via Hong Kong. Phase two, which will allow investors from China to trade in major overseas over-the-counter bond markets, is expected at a later stage.
“Bond Connect is an important access channel for international investors to tap into China’s interbank bond market,” said Jin Su, co-head of Asia Pacific Fixed Income, Currencies and Commodities (FICC) at Bank of America Merrill Lynch (BofA Merrill). “China’s economy is more open and more globally connected than ever before. Demand is set to rise.”
BANA Shanghai is one of the most active market makers among foreign banks in China’s interbank bond market for onshore clients. Now, as a market maker in Bond Connect, BofA Merrill is able to provide overseas investors seamless access to China’s US$9 trillion interbank bond market.
“For the past two decades, the world focused on ‘Made in China’, but during the next decade, the focus will shift to ‘Trade in China’,” said Joydeep Sengupta, co-head of Asia Pacific FICC at BofA Merrill. “China has the world’s third-largest bond market, but overseas investors currently own less than three percent of it. Bond Connect has enormous potential as the international investor community rebalances towards China.”
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,400 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 36 million active users, including 25 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2018 Bank of America Corporation.
Reporters May Contact:
Mark Tsang, Bank of America Merrill Lynch
Tiffany Chen, Bank of America Merrill Lynch