Despite the inclusion of onshore bonds on some global indices, portfolio managers have taken minimal exposure to the onshore bond market, citing the payment settlement issue as a key obstacle...
... Andy Seaman, partner and CIO at Stratton Street, added that his firm hasn’t bought Chinese onshore bonds due to the DVP system. The delay between bonds being delivered and cash being received of even a few hours is not a true DVP system.
“So neither the Luxembourg nor Irish regulators allow Ucits funds to buy Chinese bonds via Bond Connect.”...
Source:https://fundselectorasia.com/foreign-firms-peck-at-chinas-9trn-bond-market/