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Treasury bond futures ‘a milestone’ to boost Hong Kong’s bridgehead role: CSRC chairman

First offshore China government bond futures rose more than 1 per cent on debut on Monday

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The HKEX China government bond futures launch ceremony on Monday. Photo: Jonathan Wong
Enoch Yiu

Beijing is encouraging mainland China’s financial firms to use the city to go global, as well as urging Hong Kong-listed companies to list on the mainland, the head of the country’s securities regulator said on Monday as China unveiled its first offshore government bond futures.

“Mainland financial institutions have been using Hong Kong to go global. There are 103 mainland fund companies, securities and futures firms setting up in Hong Kong. While some of them do not have operations in Beijing, they have shops [here],” said Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), at the launch ceremony of the five-year China government bond futures.

“We would like to see more dual listings with mainland firms to raise funds in Hong Kong and encourage Hong Kong firms to list in [mainland] China,” Wu said, adding that 270 mainland Chinese firms have listed in Hong Kong since 2024 and raised HK$650 billion (US$82.9 billion).

Wu described the launch of the bond futures as “a milestone to boost Hong Kong’s bridgehead role”, adding that it also marked the latest opening of the mainland’s capital market for international investors.

The CSRC head said regulators on the mainland and in Hong Kong were discussing how to widen the cross-border trading Stock Connect scheme, specifically the inclusion of a real estate investment trust (Reit) connect and the enhancement of the southbound Stock Connect to allow mainland investors to use yuan to trade Hong Kong-listed yuan shares.

The widening of cross-border trading and listings was among the seven measures announced in a joint statement on Monday from the CSRC and Hong Kong’s Securities and Futures Commission on how to deepen ties between the two markets.

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