Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce its plans to launch China Treasury Bond Futures (Treasury Bond Futures) in Hong Kong, subject to regulatory approval.
Nicolas Aguzin, Chief Executive Officer of HKEX, said: “The launch of Treasury Bond Futures is an exciting new milestone that complements HKEX’s growing offering of China-related risk management tools as well as our overall FIC offering, giving investors even greater choice offers.” and opportunity. These unique new T-Bond futures will help increase market liquidity and support the further development of Hong Kong's RMB ecosystem, cementing the city's role as the world's leading offshore RMB hub. We look forward to working closely with the Securities and Futures Commission and all our partners to ensure the successful launch of this exciting new risk management tool as we connect China and the world.”
The launch of Treasury Bond Futures, part of HKEX's RMB and China product ecosystem, which includes MSCI China A50 Connect Index Futures and Swap Connect, will help regional and global investors interested in accessing China to manage their interest rate and investment risks more effectively. This will support greater international participation in China's equity and fixed income markets and further expand investment and risk management opportunities in Hong Kong markets.
The launch of Bond Connect in 2017, part of HKEX's unique reciprocal market access program with mainland China, was a key development in promoting international participation in the Chinese bond market, while Swap Connect, launched in May this year, allows international investors access onshore -RMB interest rate swap market. International investors' onshore bond holdings in mainland China have grown steadily, from RMB 0.8 trillion in June 2017 to RMB 3.33 trillion in June 2023.
HKEX is currently making preparations for the launch of Treasury Bond Futures. Details about the implementation and the official start date will be announced in due course.
Source: HKEX
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