The Hong Kong Exchange and Clearing Limited (HKEX) has announced its collaboration with the Hong Kong Monetary Authority, the Securities and Futures Commission, and Bond Connect Company Limited to co-host the "Hong Kong Fixed Income and Currency Summit and Bond Connect Forum." The event outlined several strategic initiatives aimed at reinforcing Hong Kong's position as a premier global hub for fixed income and currency markets.
HKEX Chairman, Mr. Tang Ka-chun, stated, "Cultivating a vibrant and world-leading fixed income and currency market will elevate Hong Kong's economic development to new heights, further strengthening its long-term competitiveness as an international financial center. This summit, jointly organized by the HKMA, SFC, HKEX, and Bond Connect Company, unveiled a series of measures that demonstrate our collective commitment to a shared vision: building a robust fixed income and currency ecosystem in Hong Kong, advancing the internationalization of the renminbi, and facilitating greater global investor access to mainland Chinese bonds and related products. We look forward to continued close collaboration with regulators, market participants, and industry stakeholders to make Hong Kong's capital market more diverse, active, and resilient."
HKEX Group Chief Executive Officer, Ms. Bonnie Y. Chan, commented, "Amid a rapidly changing global landscape, the Hong Kong market plays a pivotal role in connecting capital with opportunities, enabling investors to manage risks across different asset classes and currencies. Building on the remarkable success of the connectivity mechanisms to date, the initiatives announced today mark significant progress in implementing Hong Kong's roadmap for fixed income and currency market development. HKEX is committed to driving product innovation, optimizing market infrastructure, and deepening market connectivity. We will continue to work closely with regulators, market participants, and industry stakeholders to implement these development measures, fostering the growth of Hong Kong's fixed income and currency ecosystem and further solidifying its role as a global capital markets super-connector and a leading offshore renminbi trading hub."
HKEX welcomed the series of strategic initiatives announced at the summit. These measures represent important advancements in enhancing fixed income and currency market infrastructure, broadening product and risk management solutions, and improving connectivity in bond, derivatives, and renminbi markets. Key initiatives include:
The joint development of an electronic fixed income and currency trading platform by HKEX and the China Foreign Exchange Trade System (CFETS).
Supporting the inclusion of onshore bonds held via Bond Connect, issued by the Ministry of Finance and mainland policy banks, into the eligible non-cash collateral scope of HKEX's clearing houses, namely HKFE Clearing Corporation Limited and The Stock Exchange of Hong Kong Options Clearing House Limited.
Enhancing Bond Connect Southbound to cover Hong Kong dollar and offshore renminbi bond-related products, increasing the annual investment quota, and developing bond repurchase business using Southbound bonds as collateral.
HKEX signing a memorandum of understanding with Cross-border Interbank Payment System Company Limited (CIPS) to explore strategic cooperation in cross-border renminbi business.
HKEX researching the launch of a new renminbi-denominated gold futures contract, with delivery arrangements supported by the Shanghai Gold Exchange.
Optimizing Bond Connect Northbound operational arrangements by extending settlement times and improving efficiency.
Coinciding with the third anniversary of the launch of Swap Connect, further optimization plans were also announced. HKEX's clearing subsidiary, OTC Clearing Hong Kong Limited, will work closely with CFETS and Shanghai Clearing House to support the addition of the "7-day repo fixing rate for deposit-taking institutions" (FDR007) as a reference rate for renminbi interest rate swap transactions under Swap Connect. These optimization measures, targeted for launch in the fourth quarter of 2026 subject to regulatory approval, will further support international investors in managing renminbi interest rate risk through Hong Kong.
HKEX noted that details regarding these optimization measures will be announced in due course. These complementary initiatives integrate bond market development, risk management, clearing services, and renminbi market connectivity into a more comprehensive fixed income and currency market ecosystem, supporting Hong Kong's fixed income and currency markets as they enter their next phase of development.
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