The derivatives clearing house of the Hong Kong Stock Exchange will accept Chinese government bonds, policy financial bonds and Ministry of Finance bonds as non-cash collateral from November

PANews According to news on September 25, Hong Kong Exchanges and Clearing Limited (HKEX) announced that its wholly-owned subsidiaries and exchange-traded derivatives clearing house Hong Kong Futures Clearing Limited (Futures Clearing Company) and The Stock Exchange of Hong Kong Options Clearing House Limited (SEHK Options Clearing House) will be Starting from November, Chinese government bonds and policy financial bonds (collectively referred to as Bond Connect bonds) held through the Bond Connect "Northbound Connect", as well as overseas bonds issued by the Ministry of Finance of the People's Republic of China (MoF Bonds), will be accepted as eligible non-cash collateral to fulfill margin requirements, subject to regulatory approval.

Liu Biyin, Chief Operating Officer of Hong Kong Exchanges and Clearing Limited, said: Implementing this optimization will increase the usage scenarios of Chinese government bonds in the Hong Kong market. By accepting the bonds as collateral and using them to meet the clearing house's margin requirements, HKEX will help provide market participants with more flexible collateral management options, improve capital efficiency, and promote the sustainable development of Hong Kong's fixed income and RMB ecosystem.