HKEX’s listed derivatives clearing houses now accept eligible RMB fixed-income holdings as collateral for margin requirements
Hong Kong Exchanges and Clearing Limited (HKEX) announced today that its listed derivatives clearing houses—HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH)— have begun accepting eligible RMB fixed-income holdings as non-cash collateral for margin requirements.
On its first day, seven institutions posted over RMB 400 million worth of eligible bonds as collateral.
The initiative allows participants to use China Government Bonds and Policy Bank Bonds held through Northbound Bond Connect (collectively, Bond Connect Securities), together with offshore bonds issued by the Ministry of Finance of the People’s Republic of China (MOF Bonds), to meet margin requirements without liquidating the assets or converting them into cash. It broadens collateral choice and supports more efficient liquidity and funding management across HKEX’s markets.
HKEX Head of Markets, Gregory Yu, said:
“We are encouraged by the active first-day participation in our expanded collateral framework. Extending the use of RMB bonds as collateral from OTC Clear to our listed derivatives clearing houses marks another important milestone in strengthening cross-market connectivity, and in Hong Kong’s continued development as a global offshore RMB centre. HKCC and SEOCH are the first listed derivatives clearing houses outside the Chinese Mainland to accept China Government Bonds as collateral. Together with CMU OmniClear Limited, we are connecting Mainland bond holdings with Hong Kong’s derivatives clearing infrastructure, facilitating the wider use of RMB-denominated assets and supporting the continued internationalisation of the RMB.”
The initiative builds on HKEX’s existing RMB bond collateral arrangements, under which OTC Clear began accepting MOF Bonds and Bond Connect Securities as collateral in 2017 and 2025, respectively. Use of these bonds represent about 16 per cent of OTC Clear’s total margin balance as of September 2026.
The expansion extends eligibility for RMB bond collateral beyond OTC Clear to HKCC and SEOCH. The wider collateral pool gives participants greater flexibility to meet margin requirements and diversify their holdings.
