Hong Kong to launch 5-year RMB treasury bond futures on Aug 3

Hong Kong will start offering five-year RMB treasury bond futures from Aug 3, the Securities and Futures Commission of Hong Kong said on Thursday.

The launch will provide international investors with an effective offshore hedging tool to meet their growing need for managing government bond-related risks, said the commission.

The move will consolidate Hong Kong's position as a bond center by encouraging international investors to hold RMB treasury bonds on a long-term basis, said John Lee, chief executive of the Hong Kong Special Administrative Region (HKSAR).

Financial Secretary of the HKSAR Government Paul Chan credited the launch with enhancing Hong Kong's ecosystem of RMB-denominated products and deepening mutual market access with the Chinese mainland. It can foster the development of structured products, as well as asset management and risk management services, he said.

The Hong Kong Exchanges and Clearing Limited has been preparing for the launch and will announce further details of the contract.

Japan's core consumer prices increased 1.4 percent in May from a year earlier, growing for the 57th consecutive month, government data showed Friday.

The increase in the core consumer price index (CPI), excluding volatile fresh food costs, followed a 1.4 percent gain in April, according to the Ministry of Internal Affairs and Communications.

Core-core CPI, which strips away both energy and fresh food to reflect underlying price trends, rose 1.8 percent in May.

Energy costs fell 2.5 percent on year, after a 3.9 percent drop in April, with gasoline prices plunging 7 percent and electricity bills declining 2.4 percent.

Prices for food, excluding fresh items, were up 3.5 percent in the reporting month, slowing from a 4.1 percent rise in April.