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Hong Kong to Launch China Government Bond Futures, Enhancing International Financial Centre Status

HK

Hong Kong to Launch China Government Bond Futures, Enhancing International Financial Centre Status
HK

HK

Hong Kong to Launch China Government Bond Futures, Enhancing International Financial Centre Status

2026-06-18 17:00 Last Updated At:17:33

HKSAR Government expresses gratitude for country's support for launch of Mainland government bond futures in Hong Kong

In response to the announcement by the Central Authorities, the Securities and Futures Commission of Hong Kong issued an announcement today (June 18) that Mainland government bond futures will be launched in Hong Kong. The Government of the Hong Kong Special Administrative Region (HKSAR) welcomes this initiative.

The Chief Executive, Mr John Lee, said, "The National 15th Five-Year Plan indicates clear support for Hong Kong in consolidating and enhancing its status as an international financial centre. Hong Kong ranks third globally and first in Asia in the Global Financial Centres Index, and is one of the world's leading bond markets. We have been pursuing and working with the Mainland on the introduction of Mainland government bond futures in Hong Kong. Since the launch of Bond Connect in 2017, the scale of Chinese bond assets held by overseas investors has steadily increased, rising from around RMB0.8 trillion in June 2017 to over RMB3 trillion in April 2026. With growing demand for Renminbi-denominated products and related hedging instruments, the introduction of Mainland government bond futures in Hong Kong marks an important development milestone, providing an effective offshore risk management tool for investors. It enables investors to manage their interest rate exposures more efficiently and conveniently, further attracts international investors to participate in the Mainland bond market and to hold Renminbi treasury bonds on a long-term basis, and fosters the healthy development of the treasury bond market, thereby further consolidating Hong Kong's position as a bond centre. I sincerely thank the Central People's Government and relevant Mainland regulators for their support all along."

The Financial Secretary, Mr Paul Chan, said, "The launch of Mainland government bond futures in Hong Kong not only introduces an additional offshore risk management instrument, but also makes the suite of hedging tools more complete for international investors to manage Renminbi interest rate risks. This will help enhance the liquidity and market depth of treasury bonds, thereby attracting more global capital to participate in the Mainland treasury bond market. Introducing Mainland government bond futures marks a pivotal step in enhancing Hong Kong's Renminbi product ecosystem and deepening mutual market access. It is conducive to driving the development of structured products, as well as asset management and risk management services in Hong Kong, further consolidating Hong Kong's status as the world's leading offshore Renminbi hub and an international risk management centre. We are grateful for the strong support from the Central Authorities. The HKSAR Government and financial regulators will take forward the implementation of the relevant arrangements expeditiously."

According to the announcement, a five-year Mainland government bond futures contract will be launched in Hong Kong. Hong Kong Exchanges and Clearing Limited is undertaking the necessary preparatory work, including proposed amendments to relevant rules, and will announce further details of the contract.

Source: AI-found images

Source: AI-found images

HKEX and HKMA launch pilot project to enable digital payment solution for derivatives After-Hours Trading

The following is issued on behalf of the Hong Kong Monetary Authority:

Hong Kong Exchanges and Clearing Limited (HKEX) and the Hong Kong Monetary Authority (HKMA) announced today (June 18) a joint pilot project to explore a new digital payment solution for the After-Hours Trading (AHT) session in the derivatives market (Note 1).

This initiative aims to enhance Hong Kong's capital market and meet the growing market demand for AHT. In this connection, HKEX and the HKMA are exploring the use of e-HKD - a wholesale central bank digital currency (CBDC) operating on a 24/7 basis - for advance margin payments in the AHT session, enhancing the risk management capabilities of the derivatives market outside regular banking hours, whilst maintaining the existing operational workflows.

This pilot project will provide more flexibility and efficiency than the existing arrangement for advance margin payments. Currently, Clearing Participants (CPs) must submit advance margin deposit requests to the HKFE Clearing Corporation Limited (HKCC) by 3pm for funds to be counted for the subsequent AHT session.

HKEX is inviting CPs under the HKCC to participate in Real-Value Trial Transactions of this pilot initiative on an optional basis (Note 2). The Real-Value Trial Transactions, as well as any subsequent wider adoption, are subject to regulatory approval, market readiness and other relevant considerations.

The HKEX Chief Operating Officer, Vanessa Lau, said, "We are delighted to collaborate with the HKMA on this latest initiative to advance market accessibility and strengthen Hong Kong's capital markets infrastructure. By exploring the use of CBDC, we aim to provide a more flexible and timely payment option outside of regular business hours, and address longstanding operational pain points in the industry. This project reflects the shared commitment of HKEX and the HKMA to embracing innovation, strengthening the resilience of our markets and reinforcing Hong Kong's position as a leading international financial centre."

HKMA Deputy Chief Executive Howard Lee said, "As Hong Kong's financial infrastructure evolves to meet the growing demands of the market, the HKMA is committed to advancing innovation that enhances efficiency and resilience. The joint pilot with HKEX to enable advance margin payments for AHT using e-HKD demonstrates a wholesale application of CBDC in a live market environment, while underscoring our strong partnership with the industry stakeholders in driving financial innovation."

Note 1: Hong Kong derivatives market has been growing from strength to strength with an average daily volume (ADV) record of 1.66 million contracts achieved in 2025. This momentum carried into 2026, with ADV exceeding 1.78 million contracts in the first five months.

Note 2: More details are available on a circular published today on the HKEX website.

Source: AI-found images

Source: AI-found images

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