Hong Kong's Securities and Futures Commission has welcomed new measures announced by the People's Bank of China to support the further development of Hong Kong's fixed income and currency markets.

Two key initiatives, which relate to a joint development roadmap published earlier by the SFC and the Hong Kong Monetary Authority, were announced at the Hong Kong Fixed Income and Currency Summit and Bond Connect Forum.

The first measure involves the China Foreign Exchange Trade System and Hong Kong Exchanges and Clearing jointly establishing an electronic trading platform for fixed income and currency products in Hong Kong. Further details, including a launch timetable, will be announced in due course.

The second measure will allow onshore Chinese government bonds and policy bank bonds held under Bond Connect Northbound Trading to be accepted as eligible collateral by two HKEX clearing houses, HKFE Clearing Corporation and The SEHK Options Clearing House. The target implementation date is the end of 2026.

Together with the five-year Chinese government bond futures contract set to launch on August 3, 2026, these new measures are designed to enrich the financial ecosystem of Hong Kong's fixed income and currency markets and promote the city's development as a global hub for these activities.

Additionally, the SFC is in discussions with the People's Bank of China to further optimize the Swap Connect program, including a plan to incorporate the 7-day deposit institution repo fixing rate as a reference rate for Swap Connect contracts in the fourth quarter of 2026.

SFC Chief Executive Officer Julia Leung stated that the announced measures represent a significant step in supporting RMB internationalization and advancing Hong Kong's crucial role as a global risk management hub. She noted they provide effective hedging tools, expand offshore application scenarios for Chinese government bonds, and enhance the efficiency and transparency of fixed income and currency trading in Hong Kong.

The SFC expressed gratitude for the efforts and support of the central government, the People's Bank of China, and the China Securities Regulatory Commission, pledging continued collaboration with relevant institutions to promote RMB internationalization and the development of Hong Kong's fixed income and currency markets.