The launch comes 10 months after the initial announcement.
Chief executive John Lee proposed incentives to attract family offices to set up in Hong Kong.
Authorities in both jurisdictions announce that the latest trading agreement is set to start in six months’ time.
Foreign investors will receive equal treatment to local investors in the long term, according to asset managers.
The long-delayed launch of the southbound channel saw $619m of volume on the first day of trading.
Mainland investors will be allowed to trade offshore debt through Hong Kong as a result of the new development in the scheme.
The Central Bank of Ireland has allowed Irish-domiciled Ucits and AIFs to invest in the Chinese interbank bond market via Bond Connect.
Foreigners will likely own 15% of all onshore RMB bonds in five years, according to Angus To, deputy head of research at Industrial and Commercial Bank of China International.
Amid concerns over illiquid credit market in China, bonds issued by the government and the policy banks are an attractive option, argues Wilfred Wee, China fixed income portfolio manager at Investec Asset Management.
The inclusion of China’s onshore bonds on the Bloomberg Barclays Global Aggregate Index is seen as a positive development, but don’t expect a surge of capital in the short-term, managers said.