Institutional Investors Embrace HKEX’s New Chinese Bond Futures in Hong Kong

In a significant development, Hong Kong Exchanges and Clearing (HKEX) has unveiled 5-year China government bond futures with a contract size of 500,000 yuan (US$74,051) and a low minimum margin ratio of 7,980 yuan per contract. Kevin Fan, HKEX’s head of fixed income and currency product development, shared that the response from international institutional investors has been exceptionally positive after recent outreach efforts. These investors, many of whom are already active in the Chinese onshore bond market, valued at 200 trillion yuan as of June, are now eyeing the new offshore futures as a means to manage their Chinese treasury-bond…