Launch of Chinese govt bond futures in HK a natural development, CSRC head says

The launch of Chinese government bond futures in Hong Kong is a natural progression following meticulous preparation and close collaboration between the regulators of both places, said Wu Qing, chairman of the China Securities Regulatory Commission.

Speaking at the launching ceremony, Wu said such futures can provide international investors with a convenient and efficient interest rate risk management tool. 

This will help foreign investors feel more confident in holding Chinese bond assets, promote close integration between the spot, futures, and derivatives markets for treasury bonds in both places, and develop a more resilient and effective bond yield curve, Wu said.

It also will enrich the usage scenarios for offshore yuan and strengthen Hong Kong's function as a global offshore yuan business hub, he noted.

The CSRC is currently collaborating with relevant parties in Hong Kong to advance preparations for the inclusion of yuan-denominated stock trading counters and Real Estate Investment Trusts (REITs) into the Stock Connect program, Wu said, adding that he believes this "capital bridge" will become broader, more robust, and increasingly unimpeded.

Wu also pointed out that the CSRC is vigorously optimizing the listing procedures for overseas listings. 

Since 2024, more than 270 mainland enterprises have listed in Hong Kong, raising over HK$650 billion. Currently, mainland enterprises account for 80 percent of the market capitalization and 90 percent of the trading turnover in the Hong Kong stock market. 

This has promoted the continuous optimization of the Hong Kong stock market's structure and significantly enhanced its influence and appeal to global capital, Wu said.

He added that the CSRC will actively support domestic institutions in using Hong Kong as a starting point to "go global," proactively participate in international competition, and enhance their global resource allocation capabilities.

A total of 103 mainland securities, fund, and futures companies have established branches in the city, which, coupled with a continuously expanding cross-border product system, supports Hong Kong in fulfilling its role as an international asset and wealth management center, Wu added.

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