Hong Kong Securities and Futures Commission: Hong Kong plans to launch Chinese government bond futures.

Zhitong App has learned that on November 24th, the Securities and Futures Commission of Hong Kong announced that it plans to launch Chinese government bond futures contracts in Hong Kong. Hong Kong Exchanges and Clearing Limited (HKEX) is currently preparing for this, including proposing amendments to relevant rules. HKEX will announce the details and launch date as soon as possible. The Securities and Futures Commission of Hong Kong and the China Securities Regulatory Commission have previously established close regulatory cooperation arrangements for cross-border derivatives, including sharing supervisory information and providing regulatory enforcement assistance. These arrangements will help maintain market integrity and facilitate a better assessment and promotion of the long-term development of Chinese government bond futures contracts.

It is reported that since the implementation of the Bond Connect in 2017, the holdings of Chinese government bonds by overseas investors have steadily increased, and the demand for related hedging financial instruments has also grown. The launch of Chinese government bond futures in Hong Kong has received strong support from the central government and relevant regulatory agencies in the mainland. It can provide important risk management tools for overseas institutional investors, facilitate their further participation in the domestic government bond market, and promote the healthy development of the bond market.

Ms. Ashley Alder, the Chief Executive Officer of the Securities and Futures Commission of Hong Kong, said, "Following the launch of the Bond Connect and the MSCI China A50 futures contracts, the listing of Chinese government bond futures contracts provides overseas investors with tools to hedge against risks in mainland assets. This is an important milestone in establishing Hong Kong as a leading risk management center, especially for hedging stocks and fixed-income products based on mainland assets."