The SFC welcomes HKEX's expansion of the scope of Chinese government bonds as margin collateral.

On 2 November, the Securities and Futures Commission (SFC) welcomed the acceptance by Hong Kong Futures Exchange Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH), subsidiaries of Hong Kong Exchanges and Clearing Limited (HKEX, 00388), of Chinese government bonds and Chinese policy bank bonds as eligible non-cash margin collateral with effect from today, and the reduction of the accommodation fee for non-cash margin collateral provided by clearing house participants to 0.15% per annum. Expanding the use cases of Chinese bonds as margin collateral is a short-term measure under the SFC's strategic action framework formulated to support the implementation of Hong Kong's First Five-Year Plan and the Chief Executive's 2026 Policy Address. The measure is also one of the new measures announced by the People's Bank of China in July 2026 to support the development of Hong Kong's fixed income and currency markets. Mr Leung Chung-yin, Executive Director of the SFC's Market Supervision Division, said: "Further expanding the scope of application of Chinese government bonds as collateral will not only reduce the financing costs of market participants, but also help expand their use cases in the offshore market." Mr Leung added: "These optimisation measures, together with the reduction in the accommodation fee, will unlock capital efficiency, enhance market participation and increase the global attractiveness of RMB assets to overseas institutional investors, thereby promoting the internationalisation of the renminbi, further consolidating Hong Kong's position as the world's leading offshore renminbi hub and fostering the continued development of Hong Kong's fixed income and currency market ecosystem."