The Zhitong Finance App learned that on September 25, the Hong Kong Stock Exchange announced that its wholly-owned subsidiary and on-market derivatives clearing house Hong Kong Futures Clearing Limited (Hong Kong Futures Clearing House) and Hong Kong Stock Exchange Options Clearing Limited (Hong Kong Stock Exchange Options Clearing House) will accept Chinese treasury bonds and policy financial bonds (collectively, BondConnect bonds) held through Bond Connect's “Northbound Connect” from November 2026, as well as bonds sold overseas (collectively, BondConnect bonds) issued by the Ministry of Finance of the People's Republic of China products, in order to meet security deposit requirements, Subject to regulatory approval.
This optimization further implements the arrangements announced by the Hong Kong Securities Regulatory Commission, the Hong Kong Monetary Authority and the People's Bank of China on July 7, 2026 to accept Bond Connect bonds as eligible non-cash collateral for the Hong Kong derivatives market.
Liu Biyan, Chief Operating Officer of the Hong Kong Stock Exchange, said, “Implementing this optimization will increase the usage scenarios for Chinese treasury bonds in the Hong Kong market. By accepting relevant bonds as collateral and using them to meet the margin requirements of clearing houses, HKEx will help provide market participants with more flexible collateral management options, improve capital efficiency, and promote the continued development of Hong Kong's fixed interest rate and RMB ecosystem.”
The relevant arrangements will apply to products handled by Hong Kong Futures Clearing Company and Hong Kong Stock Exchange Options Settlement to meet their deposit requirements, so that market participants can enjoy more collateral options and improve capital utilization efficiency.