Hong Kong Stock Exchange Launches 5-Year Chinese Treasury Bond Futures Contract Tang Jiacheng: Will Further Enrich the Offshore RMB Product Ecosystem and Promote RMB Internationalization

The Zhitong Finance App learned that on August 3, the Hong Kong Stock Exchange launched a 5-year Chinese treasury bond futures contract, marking an important step in the development of Hong Kong's fixed income and currency (FIC) ecosystem and further promoting the development of Hong Kong's offshore RMB market. HKEx also welcomed China Securities Regulatory Commission Chairman Wu Qing's announcement today of a number of initiatives to deepen two-way cooperation and support the development of Hong Kong's international financial center.

At the Chinese treasury bond futures listing ceremony held today, Wu Qing mentioned a number of initiatives, including continuing to support the listing and financing of eligible domestic companies in Hong Kong; supporting the domestic listing of eligible Hong Kong stock listed companies; supporting the two index companies to strengthen cooperation to launch more indices based on Chinese assets; deepening futures market cooperation between the two places and supporting Hong Kong to launch more futures products denominated in RMB; and supporting institutions in the two regions to launch more ETF products based on the two markets and China's modern industrial system. The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission also jointly announced these measures later.

The Chinese treasury bond futures launched today not only expand the Hong Kong Stock Exchange's growing wealth of China-related products, but also complement interconnection mechanisms such as bond links and swaps. As the only Chinese treasury bond futures contract in the offshore market, this product will provide overseas investors with a tool to effectively manage the long-term and interest rate risks of mainland Chinese bonds.

The Chinese treasury bond futures listing ceremony held at the Hong Kong Financial Assembly Hall this morning brought together representatives from regulators, financial infrastructure institutions, market participants and industry stakeholders. In addition to Wu Qing, guests attending also included Hong Kong Financial Secretary Chan Mao-po, Director of the Central People's Government's Liaison Office in the Hong Kong Special Administrative Region, Zhou Ji, Chairman of the Hong Kong Securities Regulatory Commission, Wong Tin-yew and Chief Executive Leung Fung-yee, Hong Kong Monetary Authority Chief Executive Yu Weiwen, HKEx Chairman Tang Ka-shing, Chief Executive Officer Chan Yi-ting, and other important guests.

HKEx Chairman Tang Ka-shing said, “The booming fixed income and currency products market is critical to Hong Kong's long-term development as an international financial center. As international investors increase their participation in the Asian bond and RMB markets, Hong Kong will play an important role as an open and trustworthy hub market connecting China and the world. The launch of five-year Chinese treasury bond futures will further enrich the offshore RMB product ecosystem, promote the internationalization of the RMB, and strengthen Hong Kong's position as a one-stop platform for financing, trading and risk management.”

HKEx Chief Executive Chen Yiting said, “We are delighted to launch 5-year Chinese Treasury Bond Futures today. This is an important milestone in the implementation of HKEx's diversified development and multi-asset market strategy. Since the launch of Bond Connect and Swap, we have continued to expand derivatives, commodities, and fixed income and currency products to build a more comprehensive product ecosystem, so that investors can allocate capital, manage risks, and seize new opportunities through our market. Looking ahead, we will continue to work closely with regulators, infrastructure partners and market participants to expand connectivity, increase product choices, and enhance risk management capabilities across asset classes.”

China Bond Financial Valuation Center Limited has authorized the Hong Kong Stock Exchange to use relevant bond valuation information when developing and operating Chinese treasury bond futures, and to provide price calculation services to the Hong Kong Stock Exchange to ensure market transparency and credibility for offshore market participants.