HKEX's derivatives clearing house now accepts Chinese government bonds and other securities as collateral, with first-day volume exceeding RMB400 million.

On November 2, Hong Kong Exchanges and Clearing Limited (HKEX) announced that its derivatives clearing houses HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH) have begun accepting eligible RMB fixed-income assets as non-cash collateral to meet margin requirements. On the first day, a total of seven institutions submitted eligible bonds as collateral, with a total value exceeding RMB400 million. This initiative allows participants to use Chinese government bonds and policy bank bonds held through Bond Connect "Northbound Trading" (collectively "Bond Connect Securities"), as well as bonds issued offshore by the Ministry of Finance of the People's Republic of China (MOF Bonds), to meet margin requirements without having to sell the assets or convert them into cash. This measure expands collateral choices and helps participants manage liquidity and funding more effectively in HKEX's derivatives markets. HKEX Head of Markets Johnson Yuen said: "We are pleased to see active market participation on the first day following the expansion of the collateral framework. Extending the RMB bond collateral arrangement from OTC Clear to our listed derivatives clearing houses is another important milestone in strengthening cross-market connectivity and consolidating Hong Kong's position as the global offshore RMB centre. HKCC and SEOCH are the first listed derivatives clearing houses outside Mainland China to accept Chinese government bonds as collateral. Through our collaboration with CMU OmniClear Limited, we connect Mainland Chinese bond assets to Hong Kong's derivatives clearing infrastructure, expanding the use of RMB assets and helping to advance RMB internationalisation." This initiative builds on HKEX's existing RMB bond collateral arrangements. OTC Clear began accepting MOF Bonds and Bond Connect Securities as collateral in 2017 and 2025 respectively. As of September 2026, these bonds accounted for approximately 16% of OTC Clear's total margin. The expanded arrangement extends the scope of eligible RMB bond collateral from OTC Clear to HKCC and SEOCH. Broader collateral choices give participants greater flexibility to meet margin requirements and diversify their asset allocation. List of participating institutions on the first day (in alphabetical order):