A backdrop displays the title of Bond Connect at Hong Kong Exchanges in Hong Kong, China. Photo: Reuters / Bobby Yip

Hong Kong’s chief executive Carrie Lam hailed “another new chapter” in the development of capital markets integrated with the mainland during the debut ceremony of the new Bond Connect scheme on Monday.

In the first day of trading through the system, limited to Northbound trading, investors were active, with US$721.4 million of bonds purchased through the channel on the day.

Goldman Sachs forecasts that over US$1 trillion in global fixed income assets could be redirected domestic Chinese bonds over the next 10 years.