LCH Limited, an LSEG business and leading global clearing house, has begun accepting offshore Renminbi-denominated Chinese Government Bonds (CGBs) as eligible non-cash collateral.

Driven by market demand globally, the addition of offshore Renminbi-denominated CGBs further broadens LCH’s eligible collateral framework as clearing members look for greater flexibility and optionality in how margin requirements are met.

The acceptance of offshore Renminbi-denominated CGBs supports more efficient use of balance sheets and liquidity by enabling firms to post high-quality local currency assets, while continuing to benefit from LCH’s global risk management standards. Further, this enhancement reflects LCH’s ongoing focus on supporting regional market participation and facilitating access to central clearing for institutions operating across multiple jurisdictions.

Under the new framework, offshore Renminbi-denominated CGBs are accepted on a bilateral basis, with settlement through Euroclear Bank. This follows an announcement from LCH in May 2025 that it had begun accepting CGBs denominated in EUR and USD.

Susi de Verdelon, CEO, LCH Limited, said:

“Expanding our collateral eligibility framework to include offshore Renminbi-denominated Chinese Government Bonds is an important step in the evolution of our offering for global members and their customers. We look forward to continuing to evolve our capabilities to support them as their participation in central clearing grows.”

Mr Funing Song, General Manager of Financial Markets, Bank of China, said:

“Bank of China Group welcomes the inclusion of offshore Renminbi-denominated Chinese Government Bonds as eligible collateral. China’s bond market has grown rapidly, with increased depth, enhanced liquidity and strong international recognition. This provides a solid foundation for the further global deployment of Renminbi-denominated assets, offering diversity and relatively stable options that support effective risk management, enable sustainable long-term returns, and contribute to global financial stability.”