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SFC welcomes expanding use of onshore RMB bonds as margin collateral in OTC Clearing Hong Kong Limited
14
Jan
Jan
The Securities and Futures Commission (SFC) announced that OTC Clearing Hong Kong Limited (OTC Clear) has started accepting onshore bonds issued by the Ministry of Finance and Mainland policy banks, held under Northbound Bond Connect (CGBs), as margin collateral for Northbound Swap Connect transactions. The SFC, in collaboration with the People’s Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA), has also reached a consensus to expand the use of CGBs as margin collateral for all other eligible derivative transactions cleared by OTC Clear. This initiative reduces liquidity costs for global institutional investors by enabling more efficient use of onshore RMB bonds as non-cash collateral. According to Rico Leung, SFC’s Executive Director of Supervision of Markets, this measure strengthens Hong Kong’s position as a global offshore RMB hub and promotes the growth of its fixed income market. Further details, subject to regulatory review, will be announced later.
Resources:
https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR4 https://www.hkex.com.hk/News/News-Release/2025/250113news?sc_lang=en