Advancing the opening up of the bond market is an inevitable requirement for China to build a market and open financial market system. In July 2017, the northbound Bond Connect was opened to traffic. In September 2021, the southbound Bond Connect was launched. Our step-by-step manner via the "bond" open and south to north, by the mainland and Hong Kong infrastructure system connection, convenient foreign institutions "access" the bond market in country, helps to play to the bond market "price anchor" and "reservoir" function, to promote China's international balance of payments, foreign exchange market stability and support the internationalisation of the renminbi.

With the steady opening of the bond market, the market has become more vibrant and its international influence has grown. In recent years, the types of investors in bond market have been enriched and their number has grown steadily. In 2005, the International Finance Corporation and the Asian Development Bank were allowed to issue RMB bonds in the interbank bond market, and the Pan-Asia Fund and the Asian Debt Fund began to invest in the market. In 2010, the scope of foreign institutional investors allowed to enter the market was expanded to overseas central bank institutions, RMB overseas clearing banks and participating banks, and in 2016, it was further expanded to overseas licensed financial institutions and pension funds and other medium - and long-term institutional investors. As of the end of May 2022, there were 1,038 foreign institutions in the interbank market, covering more than 60 countries and regions, including the United States, Canada, the United Kingdom, France, Germany, Italy, Japan, Singapore and Australia.

In July this year, the introduction of swaps marked another important milestone in the high-quality development of China's bond market. For foreign investors, "Swap Connect" does not change the existing overseas trading habits, and improves the convenience of foreign investors' participation; The centralized clearing mechanism effectively improves the credit risk management efficiency of counterparties of foreign investors and reduces costs. At the same time, the "swap Connect" provides the convenience of efficient and diversified risk hedging, and further supports overseas investors to expand the demand for RMB bond investment. For the bond market in China, via "swap" more risk hedge efficiency and cross-border investment environment optimization, will attract more foreign investors into the market, abundant types of investors, improve trade scale, improve trading liquidity in the market expansion, perfect the institutional environment in business interaction, deepen the open markets with high quality development and cross-border cooperation, We will promote the internationalization of the renminbi.