(Yicai Global) Jan. 20 -- Hong Kong Exchanges and Clearing Ltd. (HKEx) [SEHK: 0388], operator of Hong Kong Stock Exchange, plans to launch Chinese treasury bond futures this year in a bid to further integrate with the mainland market.
With the approval of Hong Kong Securities and Futures Commission, HKEx plans to launch treasury bonds futures issued by the Chinese ministry of finance in the first half of 2017.
Fixed income investors worldwide will welcome the financial instruments, said Charles Li, chief executive of HKEx, in Hong Kong yesterday. The product will play a critical role in introducing HKEx to new fixed-income businesses, and will work as an ideal hedge against risks associated with the yuan bonds in China.
USD-CNH (the US dollar to China offshore spot) futures contracts will be launched in late March, as a supplement to existing USD-CNH futures and other futures denominated in CNH, Li noted.
HKEx also plans to set up a new market in addition to the main board and the Growth Enterprise Market (GEM), he said. Plan development is currently underway, and feedback will be solicited from market participants. Since the launch of Shenzhen-HK Stock Connect, HKEx has been in discussions with Chinese the mainland over the possibility of including Exchange-Traded Funds into the market interconnection program, he said.
HKEx has always been committed to implementing long-term strategic plans, and will seek to transform itself into a trading platform covering all asset categories, Li said, adding that Hong Kong will serve as an international asset management center connecting China and the world.