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The SAR government welcomes the Securities and Futures Commission of Hong Kong’s plan to launch the Five-Year China Government Bond (CGB) Futures on August 3 and said it will proceed with implementing the arrangements.
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Chief Executive John Lee Ka-chiu said that the nation's 15th Five-Year Plan supports Hong Kong in consolidating and enhancing its status as an international financial center, which now ranks third globally and first in Asia in the Global Financial Centres Index, and is one of the world's leading bond markets.
He also noted that the city has consistently promoted and coordinated with the mainland on the launch of CGB futures in Hong Kong. Since the introduction of Bond Connect in 2017, the scale of Chinese bond assets held by overseas investors has steadily increased, surpassing 3 trillion yuan (HK$3.48 trillion) as of April this year.
Lee said that with growing market demand for yuan-denominated products and related hedging instruments, the launch of CGB futures in Hong Kong marks a significant milestone, providing investors with effective offshore risk management tools.
He added that investors will be able to manage interest rate risk more efficiently, thereby attracting international investors to participate in the mainland bond market and hold yuan government bonds over the long term, promoting the healthy development of the government bond market and further consolidating Hong Kong's position as a bond hub.
Financial Secretary Paul Chan Mo-po said that the launch of CGB futures in Hong Kong adds an offshore risk-management product, making hedging tools for international investors to manage yuan interest-rate risks more complete. This will help enhance liquidity and market depth in treasury bonds and attract more global capital to the mainland treasury bond market.
Chan said CGB futures are a key step in improving Hong Kong's yuan product ecosystem and deepening mutual market access, which will benefit the development of structured products, asset management, and risk management services in Hong Kong, consolidating the city's position as a globally leading offshore yuan hub and international risk management center.
