Hong Kong Exchanges and Clearing Limited (HKEX) announced today that its wholly-owned subsidiaries and on-exchange derivatives clearing houses HKFE Clearing Corporation Limited (HKCC) and the SEHK Options Clearing House Limited (SEOCH), will begin accepting China Government Bonds and Policy Bank Bonds held through Northbound Bond Connect, as well as offshore bonds issued by the Ministry of Finance of the People’s Republic of China (MOF Bonds), as eligible non-cash collateral to cover margin requirements from November 2026, subject to regulatory approval.

The planned enhancement follows the announcement by the Securities and Futures Commission, the Hong Kong Monetary Authority and the People’s Bank of China on 7 July 2026 regarding the acceptance of Bond Connect Securities as eligible collateral for Hong Kong’s derivatives market.

HKEX Chief Operating Officer, Vanessa Lau, said:

“This enhancement marks an important step forward in broadening the use of Chinese Government Bonds in Hong Kong. By expanding the range of assets that can be used to meet margin requirements, HKEX is committed to supporting greater flexibility in collateral management, enhancing capital efficiency for market participants and contributing to the continued development of Hong Kong’s fixed-income and RMB ecosystem.”

The expansion of eligible non-cash collateral will apply to margin requirements for products cleared by HKCC and SEOCH, providing market participants with broader collateral choices and more efficient use of capital. Further information is available in the circulars issued today by HKCC and SEOCH, with the launch date to be announced in due course.