Hong Kong regulator explores bond, FX trading platforms to boost yuan market

Hong Kong’s securities regulator is exploring the feasibility of developing bond repurchase and foreign exchange electronic trading platforms with market participants to boost efficiency, transparency and resilience, chief executive Julia Leung Fung-yee said on Thursday.

Speaking at the Hong Kong Fixed Income and Currency Forum, Leung said global investors are increasingly diversifying their portfolios, creating unprecedented opportunities for yuan internationalisation, with Hong Kong serving as a key offshore hub to promote wider use of the currency.

She said the Securities and Futures Commission will focus on expanding yuan-denominated fixed income issuance and boosting secondary market liquidity.

The regulator also aims to strengthen risk management by supporting more derivatives, accelerating the launch of yuan government bond futures in Hong Kong, and developing a deeper repo market, Leung added.

STAFF REPORTER