The SFC welcomes new PBoC initiatives announced on July 07, 2026, to advance Hong Kong's fixed income and currency markets, including a new trading platform and collateral acceptance measures.
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On July 07, 2026, the Securities and Futures Commission ("SFC") welcomes new measures announced by the People’s Bank of China ("PBoC") today to support the further development of Hong Kong’s fixed income and currency ("FIC") markets.
Key Regulatory Initiatives
Unveiled at the Hong Kong FIC & Bond Connect Summit, two initiatives under the 2025 FIC Roadmap, jointly launched by the SFC and HKMA, were highlighted. These comprise the development of an electronic FIC trading platform by the China Foreign Exchange Trade System ("CFETS") in collaboration with Hong Kong Exchanges and Clearing Limited ("HKEX"), with launch details to follow, and the acceptance of onshore China Government and policy bank bonds held under Northbound Bond Connect as eligible collateral for HKEX’s clearing houses, targeted for completion by the end of 2026.
Complementary Market Developments
These measures coincide with the launch of the Five-Year China Government Bond Futures on 3 August 2026. Additionally, the SFC is in discussions with the PBoC to enhance Swap Connect by incorporating the interbank seven-day fixing depositary institutions repo rate ("FDR007") as a reference rate, scheduled for the fourth quarter of 2026.
Strategic Implications
Ms Julia Leung, Chief Executive Officer of the SFC, stated that these initiatives represent significant progress in RMB internationalisation and Hong Kong’s role as a global risk management hub, offering effective hedging tools and enhancing trading efficiency and transparency.
Acknowledgements and Further Information
The SFC expressed gratitude to the Central Government, the PBoC, and the China Securities Regulatory Commission for their support. The Summit convened senior officials and financial leaders to discuss the global FIC landscape and RMB internationalisation. Additional details are accessible on the SFC’s website and the press release dated 18 June 2026, alongside the document titled Initiatives to Advance Hong Kong’s Fixed Income and Currency Markets.
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