Chinese investors are buying up large amounts of Hong Kong mutual fund products that invest overseas, particularly in bonds, after authorities expanded a cross-border trading channel this month and opened an avenue to get better yields.

Chinese investors are heavily purchasing Hong Kong mutual fund products that invest overseas, particularly in bonds, following expanded cross-border trading opportunities. The Mutual Recognition of Funds (MRF) scheme has become a significant outlet due to higher quotas for mainland investors,

China expanded its support for the beleaguered yuan with a plan to issue a record amount of bills in the Hong Kong market to mop up excess liquidity.