HKEX: Industry leaders join hands to promote the development of the Hong Kong fixed income and currency market ecosystem.

HKEX announced that today (July 7th), in collaboration with the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, and Bond Connect Company, they jointly held the "Hong Kong Fixed Income and Currency Summit and Bond Connect Forum". At the meeting, several strategic initiatives were proposed to further consolidate Hong Kong's position as a global leading fixed income and currency center. Chairman of HKEX, Donald Tang, stated: "Building a vibrant, world-leading fixed income and currency market will help elevate Hong Kong's economic development and further strengthen its long-term competitiveness as an international financial center. The summit, co-organized by the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, HKEX, and Bond Connect Company, announced a series of initiatives that demonstrate a collaborative effort towards a shared vision - creating a comprehensive fixed income and currency ecosystem in Hong Kong, promoting the internationalization of the Renminbi, and facilitating more global investors to access mainland China bonds and related products. We look forward to continuing close cooperation with regulatory authorities, market participants, and industry stakeholders to make Hong Kong's capital market more diverse, active, and resilient." Chief Executive of HKEX Group, Nicolas Aguzin, said: "Amid rapidly changing global conditions, the Hong Kong market is playing an important role in connecting capital with opportunities, facilitating investors to manage risks of different asset classes and currencies. The success of the mutual market access mechanism to date is remarkable, and the initiatives announced today signify significant progress in implementing Hong Kong's development roadmap for the fixed income and currency markets. HKEX continues to drive product innovation, optimize market infrastructure, and deepen market connectivity. In the future, we will continue to work closely with regulatory authorities, market participants, and industry stakeholders to implement relevant development measures, promote the development of Hong Kong's fixed income and currency ecosystem, and further solidify Hong Kong's position as a global capital market super-connector and a leading offshore Renminbi trading hub." HKEX welcomed the series of strategic initiatives announced at today's summit. These initiatives mark significant progress in optimizing Hong Kong's fixed income and currency market infrastructure, expanding products and risk management solutions, and enhancing bond, derivative products, and Renminbi market connectivity, including: Collaborating with the China Foreign Exchange Trade System to jointly develop an electronic fixed income and currency trading platform in HKEX; Supporting the inclusion of onshore bonds held through Bond Connect, issued by the Ministry of Finance and policy banks in Mainland China, as eligible non-cash collateral for clearing in HKEX's subsidiaries - Hong Kong Futures Clearing Company Limited and The Hong Kong Clearing Corporation Limited; Optimizing the "Southbound" link of Bond Connect, covering Hong Kong dollar and offshore Renminbi bonds and related products, increasing the annual investment quota, and developing bond repurchase transactions using Southbound bonds as collateral; Signing a memorandum of understanding with the Cross-Border Interbank Payment System (CIPS) to explore strategic cooperation on cross-border Renminbi business; Researching the introduction of new Renminbi gold futures contracts, supported by delivery arrangements provided by the Shanghai Gold Exchange; Optimizing the operation arrangements of the "Northbound" link of Bond Connect, extending settlement timings and enhancing efficiency. On the occasion of the third anniversary of the "Stock Connect", further optimization plans for the mechanism were also announced today. HKEX's subsidiary, Hong Kong Securities Clearing Company, will closely cooperate with the China Foreign Exchange Trade System and Shanghai Clearing House to support adding the "7-day interbank deposit rate benchmark" (FDR007) as a reference rate for Renminbi interest rate swap transactions under the "Stock Connect". These optimization measures are targeted to be launched in the fourth quarter of 2026, subject to regulatory approval, to further support international investors in managing Renminbi interest rate risks through Hong Kong. HKEX mentioned that details about the above-mentioned optimization measures will be announced in due course. These measures complement each other and integrate bond market development, risk management, clearing services, and Renminbi market connectivity into a more comprehensive fixed income and currency market ecosystem, supporting Hong Kong's fixed income and currency market to move towards the next stage of development.