The five-year Chinese treasury bond futures contract launched by the Hong Kong Stock Exchange was officially listed and traded this week. The first week of listing was smooth and transactions were active, attracting the active participation of many domestic and foreign institutional investors. According to data released by the Hong Kong Stock Exchange, the five-year Chinese treasury bond futures contract traded a total of 13,270 lots in the first week of listing, with an average daily turnover of over 2,000 lots. Industry insiders said that offshore treasury bond futures on the Hong Kong Stock Exchange remain highly linked to the yield trend of onshore treasury bonds, and the contract price discovery function was initially revealed, while fully reflecting the liquidity characteristics of the offshore market and investor expectations. A fixed income trader at a foreign brokerage firm said, “The introduction of 5-year treasury bond futures on the Hong Kong Stock Exchange has filled an important gap in medium-term interest rate risk management tools in the offshore market. The contract design takes into account international practices and the characteristics of the Chinese market, providing us with an efficient and transparent solution for managing the long-term risk of our RMB bond portfolio.”

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