Global institutional investors eager to trade Chinese bond futures in Hong Kong, HKEX says

International asset managers, pension funds, and insurance companies have shown strong interest in new 5-year China government bond futures that will start trading in Hong Kong on Monday, according to Hong Kong Exchanges and Clearing (HKEX). The futures contracts have a size of 500,000 yuan (US$74,051) and require a low minimum margin ratio of 7,980 yuan to trade one contract.

Kevin Fan, HKEX's head of fixed income and currency product development, stated that many international institutional investors have been actively trading in the Chinese onshore bond market, which reached 200 trillion yuan as of June, making it the world's second-largest after the US. The new futures product will allow international investors without Qualified Foreign Institutional Investor (QFII) quotas to trade the contracts in Hong Kong, either to hedge risks or as an investment.

Brief written by urgent.news from South China Morning Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.