THE operator of Hong Kong’s stock exchange, Hong Kong Exchanges and Clearing Ltd. (HKEX), is “working closely” with regulators on a southbound leg of the bond connect program to expand mainland investors’ access to global bond markets, HKEX’s chief executive said Friday.

Nicolas Aguzin’s comments, made in a speech to an online summit, came after Hong Kong Chief Executive Carrie Lam said she looked forward to the “early implementation” of the southbound bond connect program, in a speech to the British Chamber of Commerce on June 17.

Aguzin did not provide a timeline for the launch of the program in his speech.

The northbound leg of the bond connect program, launched in July 2017, expanded global investors’ access to the mainland bond market, the world’s second largest.

Foreign holdings of Chinese bonds stood at a record 3.68 trillion yuan (US$568.45 billion) at the end of May.

June data were not yet available Friday from China Central Depository and Clearing Co. and the Shanghai Clearing House.

The bond connect program is operated by Bond Connect Co., a joint venture between HKEX and the China Foreign Exchange Trade System.

(SD-Agencies)