Business · Markets · 12 hrs ago
Hong Kong exchanges accept more yuan bonds as collateral
Hong Kong’s listed derivatives clearing houses began accepting eligible yuan bonds as non-cash collateral on November 2.
The change involves two clearing houses under Hong Kong Exchanges and Clearing, which handle trades in listed derivatives.
Seven institutions pledged bonds worth more than 400 million yuan on the first day.
Eligible assets include Chinese government and policy bank bonds held through Bond Connect’s northbound channel, as well as Chinese government bonds sold overseas.
Participants can use these bonds to meet margin requirements without selling them or converting them into cash.
The wider choice could help firms manage liquidity and funding in Hong Kong’s derivatives markets.
The new arrangement extends the use of yuan bonds as collateral from Hong Kong’s over-the-counter clearing service to its listed derivatives clearing houses.
Hong Kong Exchanges and Clearing began accepting eligible renminbi fixed-income assets as non-cash collateral at two listed derivatives clearing houses on November 2.
Seven institutions submitted eligible bonds on the first day, with a total value of more than 400 million yuan.
Eligible assets include mainland Chinese government and policy bank bonds held through Bond Connect’s Northbound channel, as well as offshore bonds issued by China’s Ministry of Finance.
The change lets market participants meet margin requirements without selling the bonds or converting them to cash.
- Who
- Hong Kong Exchanges and Clearing’s two listed derivatives clearing houses began accepting the collateral; seven institutions submitted bonds on the first day.
- What
- The clearing houses began accepting eligible renminbi fixed-income assets as non-cash collateral.
- When
- November 2, 2026.
- Where
- Hong Kong.
- Why
- The measure expands collateral choices and helps participants manage liquidity and funding more effectively.
This story does not have two clearly opposing sides.
HKEX’s OTC clearing house began accepting Ministry of Finance bonds as collateral.
HKEX’s OTC clearing house began accepting Bond Connect securities as collateral.
Two HKEX listed derivatives clearing houses began accepting eligible renminbi fixed-income assets as non-cash collateral.
Seven institutions submitted eligible bonds worth more than 400 million yuan in total.
- First-day submissions
- More than 400 million yuan
- Institutions submitting bonds
- 7
- Eligible Bond Connect assets
- Mainland Chinese government and policy bank bonds held through the Northbound channel
- Other eligible bonds
- Offshore bonds issued by China’s Ministry of Finance
- OTC clearing house collateral share
- Bonds accounted for about 16% of total margin as of September 2026
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What people are saying
Extending the renminbi bond collateral arrangement from the OTC clearing house to our listed derivatives clearing houses is another important milestone in strengthening cross-market connectivity and consolidating Hong Kong’s position as a global offshore renminbi centre.