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Hong Kong will establish an electronic fixed income and currency trading platform to serve local markets and yuan internationalization, as part of its push to deepen, broaden, and increase liquidity in both the stock and bond markets.
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The planned platform will enhance the connectivity and interoperability of the local central securities depositories for stocks and bonds, according to the First Five-Year Plan.
It will also modernize its debt clearing system, Central Moneymarkets Unit, making it a primary central securities depository in the region, Chief Executive John Lee Ka-chiu said.
The government outlined plans to expand the Southbound Bond Connect scheme by lifting investment caps, widening eligible investor pools, and introducing new instruments.
To improve secondary market liquidity and risk management, the city is exploring the creation of a central counterparty (CCP) for clearing repurchase (repo) transactions, enhancing over-the-counter derivatives oversight, and institutionalizing regular digital government bond sales.
Under the listing push, Hong Kong Exchanges and Clearing (0388) will deepen collaboration with Shenzhen’s Qianhai Equity Exchange to pipeline mainland growth companies toward Hong Kong initial public offerings, Lee said, adding that the government will refine the listing framework to attract leading firms from emerging technologies and strategic industries.
He pledged to implement a streamlined statutory mechanism to facilitate the re-domiciliation of overseas enterprises and financial institutions with substantive business operations in Hong Kong, paired with mutual recognition of professional qualifications to attract cross-border financial talent.
