On August 3, Hong Kong Exchanges and Clearing Limited (HKEX) officially launched its Five-Year China Government Bond (CGB) Futures contract on Monday, a landmark initiative that significantly advances the development of Hong Kong’s fixed-income and currencies (FIC) ecosystem and further diversifies and improves the city’s offshore Renminbi (RMB) financial market. HKEX fully endorses and welcomes the new policy measures unveiled by Wu Qing, Chairman of the China Securities Regulatory Commission, which aim to deepen cross-border financial cooperation and market connectivity between the Chinese Mainland and Hong Kong, and consolidate Hong Kong’s status as a world-class international financial centre. During the official launch ceremony of the CGB Futures, the CSRC, jointly with the Securities and Futures Commission (SFC), announced a series of supportive measures, including sustained support for eligible Mainland enterprises to pursue secondary listing or primary listing in Hong Kong and for qualified Hong Kong-listed companies to conduct listing and financing businesses in the Mainland market. The authorities also encourage index providers on both sides to strengthen strategic collaboration and develop more diversified indices tracking Chinese asset classes, promote in-depth cooperation between Mainland and Hong Kong futures markets to roll out more RMB-denominated futures products in Hong Kong, and drive financial institutions across the two markets to launch more innovative ETF products to enrich investor choices. As the world’s only offshore exchange-traded CGB futures product, the newly launched Five-Year CGB Futures complements HKEX’s existing cross-border market access schemes such as Bond Connect and Swap Connect, further expanding its comprehensive portfolio of China-related financial products. Critically, the new contract empowers global investors with more effective tools to manage duration risks and hedge against interest rate fluctuations in the Mainland bond market, greatly enhancing the risk management capacity of offshore RMB market participants. The launch ceremony gathered senior officials from regulatory bodies, financial infrastructure institutions, and core market participants, witnessing the official debut of the milestone product. Carlson Tong, Chairman of HKEX, emphasized that a robust fixed-income and currency market underpins Hong Kong’s long-term development as an international financial hub, and the new futures product strengthens Hong Kong’s offshore RMB product system, facilitates RMB internationalization, and consolidates the city’s role as a core platform for capital raising, trading and risk management connecting China and the globe. HKEX Chief Executive Officer Bonnie Y Chan noted that the launch marks a crucial milestone in the bourse’s strategic transformation toward a diversified multi-asset marketplace. Moving forward, HKEX will continue to cooperate closely with regulators, industry partners and market participants to expand cross-border market connectivity, enrich product offerings and upgrade cross-asset risk management systems. Backed by professional pricing data and valuation services from ChinaBond Pricing Center Co. Ltd., the Five-Year CGB Futures features transparent and credible pricing mechanisms. With standardised contract specifications covering a contract size of RMB500,000, quarterly contract months, minimum price fluctuation of 0.005% and RMB cash settlement, the product adopts exclusive derivatives holiday trading arrangements. To boost market development, the SFC will exempt commission levies for the first six months of trading and offer a 50% trading fee discount until 30 July 2027. Supported by 13 professional liquidity providers from leading banks and securities institutions, the new futures contract has garnered extensive industry recognition and participation, laying a solid foundation for long-term healthy market operation.
Source: https://www.hkex.com.hk/News/News-Release/2026/260803news?sc_lang=en