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Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) its plans to launch China Treasury Bond Futures (Treasury Bond Futures) in Hong Kong, subject to regulatory approval.
HKEX Chief Executive Officer, Nicolas Aguzin, said: "The launch of Treasury Bond Futures is an exciting new milestone that adds to HKEX's expanding suite of China-related risk management tools, as well as our overall FIC offering, providing investors with even greater choice and opportunity. These unique new T-bond futures will help drive 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 rollout of this exciting new risk management tool, as we connect China and the world."
The introduction of Treasury Bond Futures, part of HKEX’s RMB and China-product ecosystem that includes MSCI China A50 Connect Index Futures and Swap Connect, will help regional and global investors interested in accessing China to more effectively manage their interest rate and investment risks. This will support greater international participation in China’s equities and fixed-income markets and further broaden investment and risk management opportunities in Hong Kong's markets.
The launch of Bond Connect in 2017, part of HKEX’s unique mutual market access programme with Mainland China, was an important development in driving international participation in China’s bond market, whilst Swap Connect, which launched in May this year, allows international investors to tap the onshore RMB interest rate swap market. International investors’ 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 undertaking relevant preparations ahead of the launch of Treasury Bond Futures. Implementation details and the official launch date will be announced in due course.
