HKEX: Its derivatives clearing house will accept Chinese government bonds, policy financial bonds, and Ministry of Finance bonds as non-cash collateral starting from November.

On September 25, HKEX announced that its wholly-owned subsidiaries and on-exchange derivatives clearing houses, Hong Kong Futures Exchange Clearing Corporation Limited (HKFE Clearing Corporation) and The SEHK Options Clearing House Limited (SEOCH), will accept Chinese government bonds and policy financial bonds held through Bond Connect "Northbound Trading" (collectively, Bond Connect bonds), as well as offshore-issued bonds issued by the Ministry of Finance of the People's Republic of China (MOF bonds), as eligible non-cash collateral to meet margin requirements starting from November 2026, subject to regulatory approval. This enhancement further implements the arrangements announced by the Securities and Futures Commission of Hong Kong, the Hong Kong Monetary Authority and the People's Bank of China on July 7, 2026, to accept Bond Connect bonds as eligible non-cash collateral for the Hong Kong derivatives market. Bonnie Y Chan, HKEX Chief Operating Officer, said: "The implementation of this enhancement will increase the use cases of Chinese government bonds in the Hong Kong market. By accepting these bonds as collateral for meeting clearing house margin requirements, HKEX helps provide market participants with more flexible collateral management options, enhances capital efficiency, and promotes the continued development of Hong Kong's fixed income and RMB ecosystem." The arrangements will apply to products processed by HKFE Clearing Corporation and SEOCH to meet their margin requirements, giving market participants more collateral choices and enhancing capital efficiency.