China plans to allow its $568 billion social security fund to buy offshore bonds through an investment channel with Hong Kong, according to people familiar with the matter, in its latest effort to boost demand for yuan assets in the Asian financial hub.

The move would allow the National Social Security Fund to buy offshore bonds under the Southbound Bond Connect program without having to apply for overseas investment quotas from Chinese regulators, said the people, who asked not to be identified discussing private matters.

That would help streamline NSSF's investment operations and give it another channel to tap Hong Kong's debt markets, the people added.

The proposed change reflects Beijing's broader strategy to deepen financial linkages with Hong Kong while easing access for domestic institutional investors to offshore yuan-denominated assets.