In a keynote speech at the Fourth HKEX China Conference, Hong Kong Securities and Futures Commission Executive Director of Supervision of Markets Rico Leung outlined plans to deepen Hong Kong’s fixed income and currency markets under the roadmap jointly published with the Hong Kong Monetary Authority in 2025. Priorities include broader bond issuance, stronger secondary market liquidity, expanded offshore renminbi use and upgraded trading and clearing infrastructure. Hong Kong is exploring phased central clearing for bond repos and a dedicated clearing system to reduce clearing and systemic risks. It also plans to introduce more renminbi currency and renminbi-denominated futures, while HKEX and the China Foreign Exchange Trade System are developing an electronic fixed income and currency trading platform. By the end of 2026, arrangements allowing China Government Bonds and policy bank bonds held through Bond Connect to serve as collateral will be extended to futures and options clearing houses. HKEX has already halved the accommodation charge for non-cash collateral to 0.25% and may reduce it further when China Government Bonds become eligible at those clearing houses. The SFC will also explore wider non-cash collateral use, cross-margining and cross-market margining. These measures complement plans to advance renminbi stock counters and build on the launch in August of offshore Five-Year China Government Bond Futures.
2026-09-09Hong Kong Securities & Futures Commission
Hong Kong Securities and Futures Commission outlines bond repo clearing and wider renminbi collateral plans
Hong Kong Securities and Futures Commission Executive Director Rico Leung outlined plans for central clearing of bond repos, more renminbi futures and a new electronic fixed income and currency trading platform. Bond Connect holdings of China Government Bonds and policy bank bonds are due to become eligible collateral at futures and options clearing houses by the end of 2026, alongside work on cross-margining and wider non-cash collateral use.