Delivery versus Payment (DvP) settlement has been fully implemented in Bond Connect starting from today (24 August). All trades under the Bond Connect have begun to be settled on a DvP basis. The HKMA welcomes this development.
An HKMA spokesperson said there had been strong market demand for DvP settlement since Bond Connect was launched in July 2017. Thanks to the support of the People’s Bank of China (PBoC) and the efforts of the relevant institutions in the Mainland and Hong Kong, DvP settlement has been fully implemented in Bond Connect. This increases settlement efficiency and reduces settlement risks, affording greater convenience to international investors investing through Bond Connect. The HKMA will continue to work closely with the PBoC to enhance the Bond Connect platform.
Hong Kong Monetary Authority
24 August 2018