Hong Kong Exchanges and Clearing Restricted (HKEX) as we speak introduced its plans to launch China Treasury Bond Futures in Hong Kong, topic to regulatory approval.
HKEX Chief Government Officer, Nicolas Aguzin, stated:
“These distinctive new T-bond futures will assist drive market liquidity and assist the additional improvement of Hong Kong’s RMB ecosystem, cementing town’s position because the world’s main offshore RMB hub. We stay up for working intently with the Securities and Futures Fee and all our companions to make sure the profitable rollout of this thrilling new danger administration instrument, as we join China and the world.”
The introduction of Treasury Bond Futures, a part of HKEX’s RMB and China-product ecosystem that features MSCI China A50 Join Index Futures and Swap Join, will assist regional and international buyers focused on accessing China to extra successfully handle their rate of interest and funding dangers. It will assist larger worldwide participation in China’s equities and fixed-income markets and additional broaden funding and danger administration alternatives in Hong Kong’s markets.
The launch of Bond Join in 2017, a part of HKEX’s distinctive mutual market entry programme with Mainland China, was an necessary improvement in driving worldwide participation in China’s bond market, while Swap Join, which launched in Could this yr, permits worldwide buyers to faucet the onshore RMB rate of interest swap market. Worldwide buyers’ onshore bond holdings in Mainland China have grown steadily from RMB0.8 trillion in June 2017 to RMB3.33 trillion in June 2023.
HKEX is now enterprise related preparations forward of the launch of Treasury Bond Futures.