Hong Kong Securities and Futures Commission (SFC) Chairman Wong Tin-yau expressed gratitude to China Securities Regulatory Commission (CSRC) Chairman Wu Qing for unveiling a series of new measures aimed at further deepening cooperation and coordinated development between the two markets.
These measures focus on several core areas, including listing and financing, product innovation, green finance, the global expansion of financial institutions, and the facilitation of professional qualifications. Mr. Wong stated that these initiatives inject strong momentum into future coordinated development.
The five-year China government bond futures launched by Hong Kong Exchanges and Clearing Limited (HKEX) began trading this morning. Speaking at the listing ceremony, Mr. Wong described the product as highly significant, being the only onshore Chinese government bond futures listed in an offshore market. He noted it provides global investors with an effective tool for hedging onshore interest rate risks, helping to optimise asset allocation. Furthermore, it will effectively enhance the participation, liquidity, and pricing efficiency of the government bond market, thereby further promoting two-way capital flows between the mainland and overseas markets.
Mr. Wong stated that the government bond futures represent not only a major breakthrough for offshore products but also a significant milestone in the high-level opening-up of mainland financial markets and the deepening of the renminbi internationalisation process. He described it as a new starting point for forging ahead.
He also emphasised the need for concerted efforts to ensure the government bond futures truly fulfil their potential, thereby further solidifying Hong Kong's status as an offshore renminbi centre and a risk management centre. Investors and asset managers should make good use of government bond futures to hedge against interest rate risks, forming an effective complement to mechanisms like Swap Connect, improving the offshore risk control system, and steadily enhancing investment returns.
Mr. Wong suggested that securities firms and futures companies should act as rational guides for their clients, providing rich, stable products and services while deepening investor education. Industry associations and research institutions need to fully leverage their role as think tanks, continuously enhancing the professional competence and forward-looking perspective of practitioners, and deepening their understanding of diversified investment and risk dispersion.
He added that regulatory bodies, exchanges, and clearing houses must shoulder their responsibilities, continuously optimising systems and infrastructure to lay a solid foundation for launching more government bond futures products in the future. Mr. Wong concluded that the SFC will continue to work closely with all parties to persistently deepen the fixed income and currency markets, and continuously expand the depth and breadth of the offshore renminbi market.