HSBC: Allowing qualified foreign investors to participate in government bond futures trading accurately addresses the risk hedging demands of foreign investors.

According to the announcement issued by the China Securities Regulatory Commission (CSRC) today, HSBC Securities Services Director Chung Wing-ling stated: "Government bond futures have always been closely watched by overseas institutional investors. Allowing qualified overseas investors to participate in government bond futures trading precisely responds to the risk hedging demands of overseas investors, and is a powerful measure for China's capital market to continuously expand its opening up to the outside world and enhance its international competitiveness." She pointed out that government bond futures, as efficient and convenient hedging tools, can help effectively manage duration risk and hedge interest rate fluctuations. From a risk management perspective, it preliminarily forms a complete investment chain of 'government bond spot + futures', which is conducive to attracting more long-term overseas capital and allocation-oriented investors to participate in the Chinese capital market. At the same time, the participation of overseas investors in the government bond futures market will help increase market liquidity, enhance the price discovery function of the government bond futures market, and promote the alignment of the government bond futures market with international standards.