The Zhitong Finance App has learned that the Hong Kong Securities Regulatory Commission has approved the Hong Kong Stock Exchange (00388) Options Clearing House and Futures Clearing House to accept Chinese treasury bonds and policy financial bonds (collectively, BondConnect) held through BondConnect Beixingtong, as well as overseas bonds issued by China's Ministry of Finance (Ministry of Finance bonds) as eligible non-cash collateral to meet security deposit requirements.

In the case of Ministry of Finance bonds, company holdings and customer accounts can use such bonds as collateral; in the case of Bond Connect securities, company holdings, independent individual customers, and independent customer bookmaker accounts can use such securities as collateral.

Starting next month 2, the financing fee for non-cash collateral (including Chinese treasury bonds) will be reduced from 0.25% to 0.15% per year, and calculated based on the value of non-cash collateral used to meet deposit requirements after applying the relevant deduction rate.

This optimization further implements the arrangements announced by the Securities Regulatory Commission, the Hong Kong Monetary Authority and the People's Bank of China on July 7 to accept Bond Connect bonds as eligible non-cash collateral for the Hong Kong derivatives market.

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