Offshore RMB treasury bond futures to boost Hong Kong's offshore RMB business hub

HONG KONG, Aug. 2 (Xinhua) -- Paul Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, said on Sunday that offshore RMB treasury bond futures will be offered in Hong Kong from Aug. 3, marking a new milestone in the development of Hong Kong as an offshore RMB business hub.

Chan wrote in his blog that this move not only enriches the RMB risk management tools available in the Hong Kong market, but also signifies the deeper development of RMB treasury bonds in offshore markets and the orderly advancement of RMB internationalization.

The RMB treasury bonds futures will allow international investors to trade and settle relevant contracts in the offshore market using their existing trading accounts, habits, and processes in Hong Kong, Chan noted.

Chan said that the progressive rollout from Bond Connect and Swap Connect, to RMB treasury bond futures has formed a closed-loop risk management system between the spot and futures markets. This enables overseas investors to participate in RMB government bond trading in the offshore market more efficiently and conveniently, with the Hong Kong market playing a crucial role in the process.