Hong Kong Financial Secretary Paul Chan announced in the 2026-27 Budget that the city will actively collaborate with the mainland to accelerate the launch of treasury bond futures in Hong Kong. The plan also includes incorporating real estate investment trusts (REITs) into the Stock Connect scheme and integrating RMB trading counters into the Southbound Stock Connect. Additionally, authorities will explore further enhancements to the Bond Connect program.

Earlier this month, the total quota for RMB business funding arrangements was doubled to RMB 200 billion, aimed at encouraging financial institutions to facilitate broader use of RMB by enterprises and clients in trade and cross-border transactions.

Efforts will be made to promote more convenient foreign exchange quotations and trading between RMB and other regional currencies, thereby reducing transaction costs.

Regular issuance of RMB bonds with varying maturities will be conducted to diversify the offshore RMB market products and improve the offshore RMB bond yield curve.

In collaboration with the industry, the government will actively develop the construction of the offshore RMB interest rate curve and study specific measures to strengthen the price discovery function of short- and medium-term interest rate markets.

The initiative also aims to attract high-quality issuers to increase RMB bond issuance in Hong Kong, explore emerging markets, and encourage more cross-border RMB transactions to be conducted in the city.