The Hong Kong Special Administrative Region is targeting Aug 3 to start offering five-year Chinese mainland government bond futures, which, officials say, will further strengthen the city’s position as an offshore renminbi center and risk management hub for RMB assets.
The launch will provide international investors with an effective offshore hedging tool to meet their growing need for managing government bond-related risks, facilitating greater participation in the mainland treasury bond market, said the Securities and Futures Commission (SFC).
“Following an evaluation of market demand and macro environment, five-year China Government Bonds (CGB) were chosen as the underlying assets for the debut of CGB futures contracts to be traded on the Hong Kong Exchanges and Clearing Limited (HKEX),” the SFC said in a statement on Thursday.
HKEX has been making the necessary preparations for the launch, which requires the SFC’s approval.
International investors, in recent years, have steadily increased their holdings in CGB, particularly via Bond Connect. At the end of May 2026, the holding of CGB by foreign investors was about 2 trillion yuan ($295.5 billion), according to the SFC.
The launch of the contract, part of HKEX’s RMB and mainland-related suite of products that includes Stock Connect, Bond Connect, Swap Connect and MSCI China A50 Connect Index Futures, is expected to help regional and global investors interested in accessing the mainland to more effectively manage their interest rate risks.
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Expressing support for the upcoming launch of its five-year RMB treasury bond futures in Hong Kong, the People's Bank of China (PBOC) said in a statement on Thursday that the move would strengthen the willingness and confidence of long-term allocation-oriented investors to invest in China.
The PBOC and the China Securities Regulatory Commission will work with Hong Kong to enhance market monitoring and analysis, data and information sharing, and cross-border regulatory cooperation in a bid to jointly safeguard the stable and orderly operation of the two markets, the statement added.
“The launch comes at a time when asset managers’ demand for RMB-denominated fixed income assets has increased as part of their diversification strategy,” said SFC Chief Executive Officer Julia Leung Fung-yee. “It also shines a light on the critical role Hong Kong plays as a regional fixed income and offshore RMB hub.”
Terming the launch of mainland government bond futures as an important initiative for the SAR in aligning its financial sector with the nation’s 15th Five-Year Plan (2026-30), SFC Chairman Kelvin Wong Tin-yau said, “Its introduction is also a milestone in Hong Kong’s efforts to support the internationalization of RMB and develop into a global fixed income and currency hub.”
Welcoming the announcement, HKEX Chairman Carlson Tong Ka-shing said in a separate statement: “We thank the regulators in Hong Kong and the mainland for their staunch support, and we look forward to working closely with our partners and stakeholders to ensure the successful rollout of this new risk-management tool and further enhance two-way capital flows between China and the world.”
HKEX CEO Bonnie Y Chan said in a separate statement the launch of CGB futures enriches HKEX’s China-related product suite and fixed income and currencies offering.
“Complementing Bond Connect and following the success of Swap Connect, these unique CGB futures will provide investors of Chinese bonds with an efficient risk management tool, supporting the growth of Hong Kong’s RMB product ecosystem and cementing Hong Kong’s role as the world’s leading offshore RMB hub,” she added.
Hailing the launch, Chief Executive John Lee Ka-chiu highlighted that the national 15th Five-Year Plan indicates clear support for Hong Kong in consolidating and enhancing its status as an international financial center.
"It enables investors to manage their interest rate exposures more efficiently and conveniently, further attracts international investors to participate in the mainland bond market and to hold renminbi treasury bonds on a long-term basis, and fosters the healthy development of the treasury bond market, thereby further consolidating Hong Kong's position as a bond center,” said Lee.
Marking the introduction of the mainland government bond futures as a pivotal step in enhancing the city’s renminbi product ecosystem and deepening mutual market access, Financial Secretary Paul Chan Mo-po said: “It is conducive to driving the development of structured products, as well as asset management and risk management services in Hong Kong, further consolidating Hong Kong’s status as the world's leading offshore renminbi hub and an international risk management center.”
The HKSAR government and financial regulators will implement necessary arrangements expeditiously, added Chan.
