HKEX's clearing houses accepting eligible government bonds and other assets as non-cash collateral welcomed by CMU

CMU welcomes HKEX's clearing houses accepting eligible government bonds and other assets as non-cash collateral CMU today welcomes the formal acceptance of additional eligible non-cash collateral by HKFE Clearing Corporation Limited and The SEHK Options Clearing House Limited, wholly-owned subsidiaries of HKEX (00388) and the clearing houses for exchange-traded derivatives. The additional collateral includes Chinese government bonds and policy financial bonds held through Bond Connect "Northbound" (collectively "eligible Bond Connect bonds"), as well as offshore bonds issued by the Ministry of Finance of the People's Republic of China (MOF bonds). This arrangement marks an important breakthrough in expanding the use of RMB-denominated assets as collateral. The market participated actively on the first day of launch, with eligible Bond Connect bonds and MOF bonds held in custody by the Central Moneymarkets Unit (CMU) totaling more than RMB400 million successfully accepted as collateral by HKFE Clearing Corporation Limited and The SEHK Options Clearing House Limited. The expanded acceptance of eligible Bond Connect bonds and MOF bonds not only provides market participants with greater collateral flexibility but also enables more efficient capital utilization. By enhancing the availability and circulation of RMB-denominated assets, this arrangement helps deepen the connectivity between onshore and offshore financial markets, advance RMB internationalization, and consolidate Hong Kong's leading position as a fixed income and currency hub. Chen Daqiang, Group Chief Executive Officer of CMU OmniClear Holdings Limited and Chief Executive Officer of CMU, said: "We are delighted to join hands with HKEX to successfully implement the bond market optimization measures jointly announced by the People's Bank of China, the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong in July this year. Leveraging CMU's unique advantage as a one-stop gateway to onshore and offshore RMB assets, we are committed to promoting the broader use of RMB assets as collateral to consolidate Hong Kong's position as the global offshore RMB business center." CMU, operated by CMU, is the core market infrastructure of the Bond Connect scheme. Since 2010, CMU has supported the MOF in issuing offshore bonds.