Hong Kong will soon introduce China treasury bond futures contracts, as announced by the SFC. HKEX is currently preparing for the launch by proposing necessary rule amendments. The move comes as offshore investors’ holdings of China treasury bonds have been increasing steadily, and there is a growing demand for hedging tools. The launch is supported by the Mainland Government and regulators, as it will enable offshore institutional investors to participate further in the Mainland treasury bond market and promote its healthy development. This development is seen as a significant milestone in establishing Hong Kong as a premier risk management centre, particularly for hedging equities and fixed income products with Mainland assets underlying.
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