The Hong Kong Stock Exchange officially launched the five-year government bond futures for trading today.

On August 3, the Hong Kong Futures Exchange, a subsidiary of HKEX, officially launched 5-year Renminbi government bond futures, with trading for relevant contracts starting today. This product fills the gap in the offshore market for government bond futures and aims to meet the growing demand from overseas investors for interest rate risk management and trading. It holds significant importance for Hong Kong in building a complete offshore Renminbi product ecosystem. According to the contract details released by the Hong Kong Exchange, each contract has a face value of 500,000 Renminbi and adopts a cash settlement model. The contract months will be the two nearest quarter months, with trading hours from 9:30 AM to 4:30 PM. In terms of trading fees, each contract will cost 5 Renminbi, and all market participants can enjoy a 50% discount from the listing date until July 30, 2027. Currently, China's bond market is vast and growing rapidly. The scale of offshore institutions holding interbank bonds from the Bank of China has increased from 800 billion Renminbi in June 2017 to 3.2 trillion Renminbi in May 2026, of which about 2 trillion Renminbi is in government bonds. The bond market continues to open up, with overseas investors holding an increasing amount of government bonds and a growing demand for risk management. HKEX Chairman Charles Li previously stated when announcing the product plan that the 5-year government bond futures represent an important milestone in the construction of Hong Kong's fixed income and currency (FIC) product ecosystem and will further promote bidirectional capital flows between China and international markets. HKEX Group CEO Nicolas Aguzin pointed out that as an important complement to the Bond Connect, government bond futures will, along with the successfully operated Swap Connect, provide efficient risk management tools for overseas investors looking to invest in the Chinese bond market, reinforcing Hong Kong's position as a leading offshore Renminbi hub.