Hong Kong Securities and Futures Commission's Huang Tianyou: CSRC deepens cooperation between the two markets with new measures to inject strong momentum into collaborative development.

The Chairman of the Hong Kong Securities and Futures Commission, Huang Tianyou, expressed gratitude to the Chairman of the China Securities Regulatory Commission, Wu Qing, for announcing a series of new measures aimed at further deepening cooperation and collaborative development between the markets of Hong Kong and mainland China. These measures focus on several core areas, including IPO financing, product innovation, green finance, the international expansion of financial institutions, and the facilitation of professional qualifications, injecting strong momentum into future collaborative development. The 5-year China government bond futures launched by the Hong Kong Stock Exchange were listed this morning. During the listing ceremony, Huang Tianyou stated that as the only offshore market listing of China government bond futures, this holds significant meaning. It provides global investors with an effective tool for hedging onshore interest rate risks and helps optimize asset allocation continuously. On the other hand, it effectively enhances the participation, liquidity, and pricing efficiency of the government bond market, further promoting two-way capital flow between the mainland and overseas markets. He noted that government bond futures not only represent a significant breakthrough for offshore products but also serve as a crucial milestone in advancing high-level openness of the mainlands financial markets and deepening the internationalization process of the Renminbi, marking a new starting point for progress. He also emphasized the need for collective efforts to ensure that government bond futures truly realize their potential, further solidifying Hong Kong's position as an offshore Renminbi center and risk management hub. Investors and asset managers should make good use of government bond futures to hedge interest rate risks and create effective complements with mechanisms like the swap connect, enhancing the offshore risk control system and steadily improving investment returns. He called on brokerages and futures companies to act as rational guides for clients, providing robust and diverse products and services while deeply engaging in investor education. Industry associations and research institutions should fully leverage their think tank roles to continuously improve the professional competence and forward-looking vision of practitioners, deepening their understanding of diversified investments and risk diversification. Regulatory authorities, exchanges, and clearinghouses must also shoulder greater responsibilities, continuously optimizing systems and infrastructure to lay a solid foundation for the future launch of more government bond futures products. He indicated that the Hong Kong Securities and Futures Commission will continue to work closely with all parties to deepen the fixed income and currency markets, continually expanding the depth and breadth of the offshore Renminbi market.