Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the launch of its Five-Year China Government Bond (CGB) Futures contract, marking a significant step forward in the development of Hong Kong’s fixed-income and currencies (FIC) ecosystem and further enriching the city’s offshore Renminbi (RMB) market.

HKEX also warmly welcomes the measures announced by Wu Qing, Chairman of the China Securities Regulatory Commission, to deepen cooperation and connectivity between the Chinese Mainland and Hong Kong financial markets, and supporting the continued development of Hong Kong as an international financial centre.

Speaking at the CGB Futures launch ceremony, Mr Wu outlined a number of measures – as part of a joint announcement between the CSRC and the Securities and Futures Commission (SFC) – that include the continuing support of eligible Mainland enterprises to list in Hong Kong and for eligible Hong Kong-listed companies to list in the Mainland; supporting index providers in both markets to strengthen cooperation and launch more indices based on Chinese assets; deepening cooperation between the Hong Kong and Chinese Mainland futures markets to support the launch of a wider range of RMB-denominated futures products in Hong Kong; and supporting institutions in both markets to launch more ETF products.

For HKEX, the new CGB Futures contract expands its growing China-related product suite and complements existing mutual market access programmes, including Bond Connect and Swap Connect. As the only CGB futures contract available in the offshore market, this on-exchange listed instrument enhances investors’ ability to manage duration and interest-rate exposure to the Chinese Mainland bond market.

HKEX’s launch ceremony at HKEX Connect Hall brought together senior representatives from regulatory agencies, financial infrastructure institutions, market participants and industry stakeholders. In addition to Mr Wu, other attendees included Paul Chan, Financial Secretary of the HKSAR, Zhou Ji, Director of the Liaison Office of the Central People’s Government in the HKSAR, Kelvin Wong, Chairman of the Securities and Futures Commission (SFC), Julia Leung, Chief Executive Officer of the SFC, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, Carlson Tong, Chairman of HKEX, and Bonnie Y Chan, Chief Executive Officer of HKEX, as well as other distinguished guests.

HKEX Chairman, Carlson Tong, said: “A vibrant FIC market is critical to Hong Kong’s future growth as an international financial centre. As global investors increase their participation in Asia’s bond and RMB markets, Hong Kong has an important role to play as a trusted, open and connected hub that links China and the world. The launch of Five-Year China Government Bond Futures further strengthens Hong Kong’s offshore RMB product suite, supports the continued internationalisation of the currency, and reinforces the city’s position as a comprehensive platform for capital formation, trading and risk management.”

HKEX Chief Executive Officer, Bonnie Y Chan, said: “We are delighted to see the launch of Five-Year China Government Bond Futures today, marking a key milestone as HKEX delivers on its strategic imperative to develop a more diversified, multi-asset marketplace. From Bond Connect and Swap Connect to our growing derivatives, commodities and FIC offerings, we are creating a more integrated ecosystem that enables investors to allocate capital, manage risk and access new opportunities. Looking ahead, we will be working closely with regulators, infrastructure partners and market participants to expand connectivity, broaden product choice and strengthen risk-management capabilities across asset classes.”

The CGB Futures contract’s pricing benchmark is supported by ChinaBond Pricing Center Co. Ltd., which licenses bond valuation data and provides price calculation services, enhancing transparency and credibility for offshore market participants.

The SFC Commission Levy will be exempted for the first six months of trading and a market-wide trading fee discount of 50 per cent will be applied until 30 July 2027. At launch, the contract is supported by 13 liquidity providers from banks and securities firms together with extensive market participants, reflecting strong industry engagement. More details about the Five-Year CGB Futures are available on the HKEX website.

Source: HKEX