The Stock Exchange of Thailand (SET) plans to unveils ‘Bond Connect,’ a trading platform designed specifically for government bonds with the objective to diversify its investor base. The new platform features an IPO-like subscription system, while also offering bond trading in the secondary market as well. This bond purchasing system serves as a safe asset for an appealing low-risk investment option for beginner investors.
Mr. Asadej Kongsiri, President of the Stock Exchange of Thailand (SET), revealed that one of SET’s flagship projects in 2025 is to support market participants with the development of the ‘Bond Connect’ platform to increase accessibility for government bond trading in the primary market.
Investors will be able to subscribe to government bonds akin to the subscribing to an Initial Public Offering (IPO), trade via a highly liquid secondary market, and use the purchased bond as collateral in investments of other assets.
Currently, there are only a handful of safe assets in the market, with government bonds standing out as one of the prime choices for beginner investors due to their lower risk profile. Investors will be able to subscribe to the bond via cash balance accounts on the platform.
In addition, the transferring and trading between banks or securities companies within the secondary market can be executed with relative ease, leading to a prospective shift in bondholders’ outlook, potentially deterring them from their traditional approach of maintaining bonds for 5 to 10 years, only to liquidate upon maturity.
A more liquid secondary market could bring about immense advantages for private investors, amplifying trading activity and consequently heightening the market’s overall liquidity.
