The Zhitong Finance app learned that on November 24, the Hong Kong Securities Regulatory Commission announced that Hong Kong plans to launch a Chinese treasury bond futures contract. Hong Kong Exchanges and Clearing Limited (HKEx) is undertaking relevant preparations, including proposed changes to the relevant rules. HKEx will announce the relevant details and launch date as soon as possible. The Hong Kong Securities Regulatory Commission and the China Securities Regulatory Commission have previously established close regulatory cooperation arrangements on cross-border derivatives, including sharing supervisory information and providing regulatory enforcement assistance. These arrangements will help maintain market integrity and help to better evaluate and promote the long-term development of Chinese treasury bond futures contracts.

According to reports, since the launch of Bond Connect in 2017, Chinese treasury bonds held by overseas investors have been rising steadily, and demand for related safe-haven financial instruments has also gradually increased. The launch of Chinese treasury bond futures in Hong Kong has received strong support from the central government and relevant mainland regulators. It can provide overseas institutional investors with important risk management tools and facilitate their further participation in the domestic treasury bond market, thus promoting the healthy development of the treasury bond market.

Ms. Leung Fung-yee, Chief Executive of the Hong Kong Securities Regulatory Commission, said, “Following the launch of the Swaps and MSCI China A50 Connectivity Index futures contracts, the listing of Chinese treasury bond futures contracts has added tools for overseas investors to hedge against mainland asset risks. This is an important milestone in establishing Hong Kong as a leading risk management center, particularly for equities and fixed income products used as hedging against mainland assets.”