Treasury bond futures ‘a milestone’ to boost Hong Kong’s bridgehead role: CSRC chairman
Beijing is encouraging mainland China’s financial firms to use the city to go global, as well as urging Hong Kong-listed companies to list on the mainland, the head of the country’s securities regulator said on Monday. “Mainland financial institutions have been using Hong Kong to go global. There are many mainland securities and futures firms setting in Hong Kong, while some of them do not have…
China Securities Regulatory Commission Chair Wu Qing declared the launch of China government bond futures as "a milestone to boost Hong Kong's bridgehead role" during the event's inauguration. Wu emphasized that the move would encourage dual listings with mainland firms to raise funds in Hong Kong and urge Hong Kong firms to list in mainland China.
The new five-year China government bond futures contracts debuted with a 1.2% increase, trading at 107.68 and 107.66 respectively by 10am on Monday. Hong Kong Exchanges and Clearing Chairman Carlson Tong Ka-shing described the launch as a significant milestone that would allow international investors to open, hedge, and clear positions entirely offshore.
Financial Secretary Paul Chan Mo-po echoed this sentiment, stating that the launch marks the maturing of Hong Kong's offshore yuan product suite and the strengthening of the internationalization of the currency. The treasury bond futures, which follow the recent adoption of Bond Connect and Swap Connect schemes, aim to broaden the yuan bond market and enhance internationalization.
The low minimum margin ratio of 7,980 yuan for one contract further encourages investor participation.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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