Zhitong Finance App learned that on November 2, Hong Kong Exchanges and Clearing Limited (HKEx) announced that its derivatives clearing houses — Hong Kong Futures Clearing Limited (Hong Kong Futures Clearing Company) and Hong Kong Stock Exchange Options Clearing Limited (Hong Kong Stock Exchange Options Clearing House) — have begun accepting eligible RMB fixed interest 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 of over RMB 400 million.
This move allows participants to use Chinese treasury bonds and policy bank bonds (collectively, “BondConnect Securities”) held through Bond Connect's “Northbound Connect”, as well as bonds sold overseas by the Ministry of Finance of the People's Republic of China (Ministry of Finance bonds) to meet security deposit requirements without having to sell assets or convert them into cash. This measure expands collateral options and helps participants manage liquidity and capital more effectively in the HKEx derivatives market.
Yu Xueqin, head of marketing at the Hong Kong Stock Exchange, said, “We are very happy to see the active participation of the market on the first day after the collateral framework was expanded. Expanding RMB bond collateral arrangements from OTC settlement companies to its listed derivatives clearing houses is another important milestone in strengthening cross-market ties and consolidating Hong Kong's position as a global offshore RMB center. The Hong Kong Futures Clearing Corporation and the Hong Kong Stock Exchange Options Clearing House are among the first listed derivatives clearing houses outside mainland China to accept Chinese treasury bonds as collateral. Through cooperation with Xunqing Settlement Co., Ltd., we will connect mainland Chinese bond assets to Hong Kong's derivatives settlement infrastructure, expand the use of RMB assets, and help promote RMB internationalization.”
This move is based on HKEx's existing RMB bond collateral arrangement. OTC clearing companies began accepting Ministry of Finance bonds and Bond Connect securities as collateral in 2017 and 2025, respectively. As of September 2026, these bonds accounted for about 16% of the total margin of OTC settlement companies.
The expanded arrangement extends the scope of application of eligible RMB bond collateral from OTC clearing companies to Hong Kong Futures Clearing Company and Hong Kong Stock Exchange Options Clearing House. A wider range of collateral options allows participants to meet margin requirements more flexibly and diversify their asset allocation.
List of participating organizations on the first day (in alphabetical order):
