Wu Qing attended the listing ceremony for government bond futures and proposed five policy measures to support Hong Kongs capital market.

On August 3rd, Chairman Wu Qing, during the ceremony for the launch of RMB government bond futures at the Hong Kong Exchange, stated that in recent years, under the guidance of the "One Country, Two Systems" policy, Hong Kong has maintained a stable overall situation, experienced positive development momentum, a strong economic recovery, and a prosperous financial market. The IPO financing amount on the Hong Kong Stock Exchange has ranked among the top globally for two consecutive years, and the bond market issuance scale has reached new highs, making Hong Kong the largest cross-border wealth management center in the world. The China Securities Regulatory Commission (CSRC) is firmly implementing the central government's decision-making and deployment, placing significant emphasis on supporting Hong Kong's international financial center construction. By launching and implementing measures such as the "Five Initiatives to Benefit Hong Kong", the CSRC aims to comprehensively deepen practical cooperation with Hong Kong colleagues in terms of markets, institutions, and products, injecting new vitality and momentum into the development of the capital market. The full text is as follows: Respected Director Zhou Ji, Secretary Paul Chan Mo-po, Chairman Huang Tianyou, President Eddie Yue, Chairman Tang Jiacheng, esteemed colleagues, ladies and gentlemen: Good morning, everyone! In this summer of August, it is a pleasure to gather with you by the banks of the fragrant harbor to witness the listing of RMB government bond futures on the Hong Kong Exchange. This marks another important milestone in the practical cooperation between Mainland China and Hong Kong's capital markets, serving the overall national economic and financial development. On behalf of the China Securities Regulatory Commission, I extend my warmest congratulations! I would also like to take this opportunity to express heartfelt thanks to all sectors of society for their long-standing concern and support for the development of the capital markets in both regions! Government bond futures are one of the most representative interest rate derivatives in the international financial market, playing an increasingly important role in the modern financial system. Currently, international investors hold Chinese bonds amounting to 3.2 trillion yuan, with the demand for interest rate risk management on the rise. Three months ago, qualified foreign investors (QFI) participated in the domestic government bond futures trading, which has been implemented. With the joint cooperation of the CSRC, the People's Bank of China, and relevant parties in Hong Kong, significant and meticulous preparatory work has been done by regulatory and market institutions on both sides regarding rule-making, market organization, technical implementation, and risk prevention. Today, the 5-year RMB government bond futures officially launched in Hong Kong, which can be said to be timely and well-prepared. The coordinated opening of onshore and offshore markets will not only provide international investors with convenient and efficient tools for interest rate risk management, allowing foreign capital to hold Chinese bond assets more confidently, but will also promote a closer linkage between the onshore and offshore government bond cash, futures, and derivatives markets, establishing a more resilient and effective government bond yield curve. In the long run, the development of this important product will further enrich the use scenarios of offshore RMB, strengthen Hong Kong's role as a global offshore RMB business hub, and enhance the quality and effectiveness of financial services for the real economy. Esteemed guests and colleagues, In recent years, under the guidance of the "One Country, Two Systems" policy, Hong Kong has maintained a stable overall situation, experienced positive development momentum, a strong economic recovery, and a prosperous financial market. The IPO financing amount on the Hong Kong Stock Exchange has ranked among the top globally for two consecutive years, and the bond market issuance scale has reached new highs, making Hong Kong the largest cross-border wealth management center in the world. The CSRC is firmly implementing the central government's decision-making and deployment, placing significant emphasis on supporting Hong Kong's international financial center construction, and taking the opportunity of launching and implementing measures such as the "Five Initiatives to Benefit Hong Kong" to comprehensively deepen practical cooperation with Hong Kong colleagues in markets, institutions, and products, injecting new vitality and momentum into the development of the capital market. In terms of supporting enterprises to list in Hong Kong, we are vigorously optimizing the offshore listing filing workflow, enhancing standardization and transparency, and actively supporting qualified Mainland enterprises to list in Hong Kong. Since 2024, over 270 Mainland enterprises have completed filing to list in Hong Kong, raising over 650 billion Hong Kong dollars. Currently, Mainland enterprises account for 80% of the total market capitalization and 90% of the trading volume among listed companies in Hong Kong. A number of leading enterprises from the fields of new energy, new consumption, biomedicine, and artificial intelligence have listed in Hong Kong, continuously optimizing the structure of the Hong Kong stock market and significantly enhancing its influence and attractiveness to global capital. Correspondingly, enterprises and investors have gained development opportunities and shared in the development results. In terms of deepening interconnectivity between the two markets, the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, as the first "Capital Bridge" connecting the two markets, has been operating smoothly for over ten years. The scope and types of products have continuously expanded, with the market capitalization coverage of bi-directional stock listings now exceeding 90%. This has not only effectively enhanced market activity but also strongly promoted the integration and connectivity of capital, technology, and information between the two regions. Currently, we are working closely with Hong Kong to expedite the preparation for the inclusion of RMB stock trading desks and REITs into the Stock Connect, believing that this bridge will become wider, more solid, and smoother. In promoting cooperation between institutions and products from both regions, we actively support domestic institutions to use Hong Kong as a starting point to "go out", proactively participating in international competition and enhancing global resource allocation capabilities. Currently, 103 Mainland securities, fund, and futures companies have set up branches in Hong Kong, steadily expanding their business scope and demonstrating unique professional service capabilities. At the same time, as MSCI A50 index futures are launched in Hong Kong, arrangements for cross-listing ETFs and mutual recognition of funds between Mainland China and Hong Kong are continuously deepening, with a diversified cross-border product system being developed to strongly support Hong Kong's role as an international asset management and wealth management center. Overall, in recent years, Hong Kong's capital market has achieved remarkable results and excellent performance, with the competitiveness and influence of its international financial center significantly enhanced, attracting increasing attention and favor from global investors. These achievements are the result of strong support from the central government, proactive leadership from the SAR government, and close collaboration and joint efforts from regulatory agencies and market colleagues in both regions. Practice has proven that with the motherland as its backing and connecting the world, relying on the countrys vast market, complete industrial ecosystem, as well as its internationally-oriented regulatory framework and well-developed infrastructure, Hong Kong has unparalleled confidence and unique advantages for development. We are full of confidence in Hong Kong's future prosperity! Esteemed guests and colleagues, ladies and gentlemen, At this moment, as the world undergoes dramatic changes unseen in a century and the global economy faces increasing instability and uncertainty, alongside a new wave of technological revolution and industrial transformation accelerating breakthroughs that are reshaping global economic structures and human production and life, we are confronted with both serious risks and challenges as well as rare opportunities and hopes. At this crucial historical juncture, the state has formulated and implemented the "14th Five-Year Plan," making strategic deployments for high-quality economic development and accelerating the construction of a strong financial nation. The development plan for the financial and capital markets over the next five years is currently being formulated vigorously. The SAR government is also drafting its first "Five-Year Plan." Proactively aligning with the national strategy and actively integrating with and serving the overall national development is a shared responsibility of the capital markets in both regions, requiring us to shoulder the mission and cooperate in both directions. Today, we will further introduce policy measures that deepen pragmatic cooperation and support the development of Hong Kong's capital market. First, we will focus on "functional coordination" to better support enterprises in cross-border financing. We will continue to support domestic enterprises expanding their international presence to list in Hong Kong, assist high-quality Hong Kong-listed companies with domestic listings, and jointly enhance the effectiveness of services for new productive forces. At the same time, we will actively support qualified Hong Kong companies to issue bonds in Mainland China and achieve innovative development through diversified capital market tools. Second, we will focus on "product coordination" to make it more convenient for global investors to allocate Chinese assets. We will support the two regions index companies to strengthen collaboration, introduce more indices based on Chinese assets, and encourage industry institutions from both regions to launch more ETF products based on the two markets, aligned with China's modern industrial system, while optimizing the ETF product registration mechanism, collectively enhancing the international influence of Chinese indices and assets. Additionally, we will deepen cooperation in the futures markets of both regions and support Hong Kong in launching more futures products denominated in RMB to construct a more diversified asset ecosystem. Third, we will focus on "ecological coordination" to provide greater space for institutional cooperation and talent exchange. Hong Kong has always been a "bridgehead" for Mainland financial institutions venturing into the world. We will support more high-quality securities and fund companies to operate and grow in Hong Kong and globally, building first-class investment banks and investment institutions to provide more efficient and compatible financial services for Chinese enterprises and investors global layout. We will explore expanding the mutual recognition of qualifications for securities and futures professionals between the two regions to facilitate employment and practice for outstanding professionals. Fourth, we will focus on "regulatory coordination" to jointly maintain the stable operation of the markets in both regions. Financial security is the foundation for the prosperous development of the financial sector and markets. We will strengthen regulatory collaboration with Hong Kongs regulatory authorities, deepen cooperation in the areas of issuance and listing, intermediary institutions, and enforcement of regulations, while continuously improving risk monitoring and information-sharing mechanisms, enhancing oversight of capital cross-border flow risks, and coordinated responses to prevent systemic risks. Fifth, we will focus on "governance coordination" to contribute more Chinese wisdom to global financial development. We will strengthen cooperation with Hong Kong regulatory agencies under bilateral and multilateral mechanisms, promoting pilot projects for sustainable information disclosure among listed companies in both regions, deepening mutual learning and policy collaboration in frontier innovative fields such as artificial intelligence and blockchain, and promoting the improvement and mutual recognition of international regulatory standards, thus enhancing Chinas participation and influence in global financial governance. Esteemed guests, colleagues, ladies and gentlemen, Looking ahead to the "14th Five-Year Plan," under the strong leadership of the central government and the solid guarantee of "One Country, Two Systems," the future of Hong Kong is bound to be brighter, and the capital market of Hong Kong will certainly be revitalized with vigorous energy. We will continue to consistently support Hong Kong in consolidating and enhancing its position as an international financial center, and we eagerly anticipate working hand in hand with Hong Kong's financial regulators and market colleagues to jointly promote the high-quality development of the two regions' capital markets through deepened collaboration, contributing greater strength to the modernization of China and the construction of a strong financial nation! Finally, I wish the RMB government bond futures in Hong Kong a successful launch and a stable future. Thank you, everyone! This article is compiled from the CSRC official WeChat account, GMTEight editor: Chen Siyu.