Hong Kong Exchanges and Clearing Limited announced today that its wholly-owned subsidiaries and on-market derivatives clearing house Hong Kong Futures Clearing Limited and Hong Kong Stock Exchange Options Clearing Limited will accept Chinese treasury bonds and policy financial bonds held through Bond Connect “Northbound”, as well as overseas bonds issued by the Ministry of Finance of the People's Republic of China as eligible non-cash collateral to meet margin requirements, subject to regulatory approval. Liu Biyan, Chief Operating Officer of the Hong Kong Stock Exchange, said that implementing this optimization will increase the usage scenarios of Chinese treasury bonds in the Hong Kong market. By accepting relevant bonds as collateral and using them to meet the security deposit requirements of clearing houses, HKEx helps provide market participants with more flexible collateral management options, enhance capital efficiency, and promote the continued development of Hong Kong's fixed interest rate and RMB ecosystem.

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