HKEX’s Listed Derivatives Clearing Houses Begin Accepting China Government Bonds, Policy Bank Bonds and MOF Bonds as Collateral

• HKCC and SEOCH now accept Bond Connect Securities and MOF Bonds as eligible non-cash collateral, broadening collateral choice and supporting efficient liquidity management
• The initiative is part of HKEX’s ongoing commitment to broaden and deepen Hong Kong’s RMB ecosystem
• Over RMB 400 million worth of eligible bonds were posted as collateral on Day 1

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Monday) that its listed derivatives clearing houses—HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH)— have begun accepting eligible RMB fixed-income holdings as non-cash collateral for margin requirements. On its first day, seven institutions posted over RMB 400 million worth of eligible bonds as collateral.

The initiative allows participants to use China Government Bonds and Policy Bank Bonds held through Northbound Bond Connect (collectively, Bond Connect Securities), together with offshore bonds issued by the Ministry of Finance of the People’s Republic of China (MOF Bonds), to meet margin requirements without liquidating the assets or converting them into cash. It broadens collateral choice and supports more efficient liquidity and funding management across HKEX’s markets.

HKEX Head of Markets, Gregory Yu, said: “We are encouraged by the active first-day participation in our expanded collateral framework. Extending the use of RMB bonds as collateral from OTC Clear to our listed derivatives clearing houses marks another important milestone in strengthening cross-market connectivity, and in Hong Kong’s continued development as a global offshore RMB centre. HKCC and SEOCH are the first listed derivatives clearing houses outside the Chinese Mainland to accept China Government Bonds as collateral. Together with CMU OmniClear Limited, we are connecting Mainland bond holdings with Hong Kong’s derivatives clearing infrastructure, facilitating the wider use of RMB-denominated assets and supporting the continued internationalisation of the RMB.”

The initiative builds on HKEX’s existing RMB bond collateral arrangements, under which OTC Clear began accepting MOF Bonds and Bond Connect Securities as collateral in 2017 and 2025, respectively. Use of these bonds represent about 16 per cent of OTC Clear’s total margin balance as of September 2026.

The expansion extends eligibility for RMB bond collateral beyond OTC Clear to HKCC and SEOCH. The wider collateral pool gives participants greater flexibility to meet margin requirements and diversify their holdings.

Operational details, including the applicable risk-management arrangements, are set out in the relevant clearing-house circulars.

Day 1 Participants List (in alphabetical order):

About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.

As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.

HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.

www.hkexgroup.com

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