HKEX Launches 5-Year China Government Bond Futures
HONG KONG, Aug. 3, 2026 /PRNewswire/ -- Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Monday) the launch of its Five-Year China Government Bond (CGB) Futures contract, marking a significant step forward in the development of Hong Kong's fixed-income and currencies (FIC) ecosystem and further enriching the city's offshore Renminbi (RMB) market.
HKEX also warmly welcomes the measures announced by Wu Qing, Chairman of the China Securities Regulatory Commission, to deepen cooperation and connectivity between the Chinese Mainland and Hong Kong financial markets, and supporting the continued development of Hong Kong as an international financial centre.
HKEX held a launch ceremony at HKEX Connect Hall today, bringing together senior representatives from regulatory agencies, financial infrastructure institutions, market participants and industry stakeholders to celebrate the product launch.
For HKEX, the new CGB Futures contract expands its growing China-related product suite and complements existing mutual market access programmes, including Bond Connect and Swap Connect. As the only CGB futures contract available in the offshore market, this on-exchange listed instrument enhances investors' ability to manage duration and interest-rate exposure to the Chinese Mainland bond market.
HKEX Chairman, Carlson Tong, said: "A vibrant FIC market is critical to Hong Kong's future growth as an international financial centre. As global investors increase their participation in Asia's bond and RMB markets, Hong Kong has an important role to play as a trusted, open and connected hub that links China and the world. The launch of Five-Year China Government Bond Futures further strengthens Hong Kong's offshore RMB product suite, supports the continued internationalisation of the currency, and reinforces the city's position as a comprehensive platform for capital formation, trading and risk management."
HKEX Chief Executive Officer, Bonnie Y Chan, said: "We are delighted to see the launch of Five-Year China Government Bond Futures today, marking a key milestone as HKEX delivers on its strategic imperative to develop a more diversified, multi-asset marketplace. From Bond Connect and Swap Connect to our growing derivatives, commodities and FIC offerings, we are creating a more integrated ecosystem that enables investors to allocate capital, manage risk and access new opportunities. Looking ahead, we will be working closely with regulators, infrastructure partners and market participants to expand connectivity, broaden product choice and strengthen risk-management capabilities across asset classes."
The CGB Futures contract's pricing benchmark is supported by ChinaBond Pricing Center Co. Ltd., which licenses bond valuation data and provides price calculation services, enhancing transparency and credibility for offshore market participants.
Key Contract Specifications |
|
Underlying bond |
Five-year China Government Bonds issued in the Chinese |
Contract size |
RMB500,000 |
Contract months |
The two nearest quarter months |
Minimum fluctuation |
0.005% of the contract size, equivalent to RMB25 |
Settlement method |
Cash settled for difference in RMB |
Trading arrangements |
Designated as a derivatives holiday trading contract |
The SFC Commission Levy will be exempted for the first six months of trading and a market-wide trading fee discount of 50 per cent will be applied until 30 July 2027. At launch, the contract is supported by 13 liquidity providers from banks and securities firms together with extensive market participants, reflecting strong industry engagement. More details about the Five-Year CGB Futures are available on the HKEX website.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world's leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
SOURCE Hong Kong Exchanges and Clearing Limited
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