China pledges support for trading of treasury bond futures in Hong Kong

Top financial regulator declares support for move promoting yuan internationalisation and the city’s role as a yuan hub China will double down on its support for Hong Kong as a global hub for the offshore yuan, with Beijing’s top market regulator saying that the city could soon begin offering trading of yuan-denominated treasury bond futures. Beijing would support Hong Kong launching five-year Chinese government bond futures in the near term, making it easier for overseas investors to put long-term asset allocations into yuan assets, said Wu Qing, chairman of the China Securities Regulatory Commission (CSRC) at the annual Lujiazui financial forum in Shanghai on Wednesday, without giving a time frame. His comments indicate that the much hoped-for financial derivative product may materialise soon in the city after lengthy regulatory discussions. An official launch would serve Beijing’s ambition of yuan internationalisation amid the diminishing role of the US dollar, while solidifying Hong Kong’s status as a global financial hub and the world’s biggest centre for offshore yuan transactions.

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