Hong Kong Securities and Futures Commission: Welcomes new measures to promote the development of Hong Kong's fixed income and currency markets.

The Securities and Futures Commission of Hong Kong (SFC) welcomes the new measures announced by the People's Bank of China today (July 7) to support further development of Hong Kong's fixed income and currency markets. Two major measures, related to the "Fixed Income and Currency Market Development Roadmap" jointly released by the SFC and the Hong Kong Monetary Authority in 2025, were announced at the Hong Kong Fixed Income and Currency Summit and Bond Connect Forum held today. The details are as follows: 1. The China Foreign Exchange Trading Center will collaborate with HKEX to establish an electronic fixed income and currency trading platform in Hong Kong. Further details on the trading platform, including the launch schedule, will be announced in due course. 2. Acceptance of onshore Chinese government bonds and policy bank bonds held under the Bond Connect Northbound Channel as eligible collateral for HKEX's two clearing houses - Hong Kong Futures Clearing Limited and Hong Kong Securities and Clearing Limited - with a target implementation date by the end of 2026. Together with the launch of the five-year Chinese government bond futures contracts on August 3, 2026, these new measures will enrich the financial ecosystem of Hong Kong's fixed income and currency markets and drive Hong Kong to develop into a global hub for fixed income and currency. In addition, the SFC is currently discussing with the People's Bank of China to further optimize the currency swap, including plans to include the "7-day Interbank Deposit Repurchase Rate" (FDR007) as the reference rate for currency swap contracts by the fourth quarter of 2026. Ashley Alder, the Chief Executive Officer of the SFC, stated: "The measures announced today are an important step in supporting the internationalization of the renminbi and promoting Hong Kong's key role as a global risk management hub. These measures provide effective hedging tools, expand the offshore applications of Chinese government bonds, and enhance the efficiency and transparency of fixed income and currency trading in Hong Kong." The SFC expresses its gratitude to the central government, the People's Bank of China, and the China Securities Regulatory Commission for their efforts and support, and will continue to collaborate with relevant agencies to promote the internationalization of the renminbi and the development of Hong Kong's fixed income and currency markets.