Hong Kong Stock Exchange launches 5-year Chinese government bond futures contracts. Tang Jiacheng: This will further enrich the offshore RMB product ecosystem and promote the internationalization of the RMB.

On August 3, HKEX launched a five-year Chinese government bond futures contract, marking an important step in the development of Hong Kong's fixed income and currency (FIC) ecosystem and further promoting the development of the offshore renminbi market. HKEX also welcomed the announcement by the Chairman of the China Securities Regulatory Commission (CSRC), Wu Qing, today regarding several initiatives to deepen bilateral cooperation and support the development of Hong Kong as an international financial center. At the launch ceremony for the Chinese government bond futures today, Wu Qing mentioned several initiatives in his speech, including continued support for eligible domestic enterprises to list and raise funds in Hong Kong, support for eligible Hong Kong-listed companies to list in the mainland; support for closer collaboration between indices companies in both regions to launch more indices based on Chinese assets; deepening cooperation between the futures markets of both regions to support Hong Kong in launching more futures products settled in renminbi; and supporting institutions in both regions to introduce more exchange-traded fund (ETF) products that are based on the markets of both regions and layout for China's modern industrial system, among others. The CSRC and the Hong Kong Securities and Futures Commission (SFC) will also jointly announce these initiatives shortly. The Chinese government bond futures launched today not only expands HKEXs continuously enriching range of China-related products but also complements the interconnected mechanisms such as Bond Connect and Swap Connect. As the only Chinese government bond futures contract in the offshore market, this product will provide overseas investors with an effective tool to manage duration and interest rate risks associated with mainland Chinese bonds. The launch ceremony for the Chinese government bond futures was held this morning at the Hong Kong Convention and Exhibition Centre, gathering representatives from regulatory agencies, financial infrastructure institutions, market participants, and industry stakeholders. In addition to Wu Qing, guests included Paul Chan Mo-po, Financial Secretary of the Hong Kong Special Administrative Region; Zhou Qi, Director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region; Huang Tianyou, Chairman of the Hong Kong SFC; Leung Fung-yee, Chief Executive Officer of the Hong Kong SFC; Eddie Yue, Chief Executive of the Hong Kong Monetary Authority; Charles Li, Chairman of HKEX; and other important guests. Charles Li, Chairman of HKEX, stated: "A thriving market for fixed income and currency products is vital for Hong Kongs long-term development as an international financial center. As international investors increase their participation in the Asian bond and renminbi markets, Hong Kong will play a significant role as an open and trustworthy hub linking China and the world. The launch of the five-year Chinese government bond futures will further enrich the offshore renminbi product ecosystem, promote the internationalization of the renminbi, and solidify Hong Kong's position as a one-stop platform for financing, trading, and risk management." Charles Li, Chief Executive Officer of HKEX, expressed: "We are delighted to launch the five-year Chinese government bond futures today, which is an important milestone in HKEX's implementation of our diversified development and multi-asset market strategy. Since the introduction of Bond Connect and Swap Connect, we have continuously expanded our derivatives, commodities, and fixed income and currency products to build a more comprehensive product ecosystem, enabling investors to allocate capital, manage risk, and seize new opportunities through our markets. Looking ahead, we will continue to work closely with regulatory agencies, infrastructure partners, and market participants to enhance connectivity, increase product choices, and improve cross-asset class risk management capabilities." China Central Depository & Clearing Co., Ltd. has authorized HKEX to use relevant bond valuation information and provide price calculation services during the development and operation of Chinese government bond futures, ensuring market transparency and credibility for offshore market participants.