HKEX to accept China Government Bonds as non-cash collateral from November 2

By Reuters News

Oct 16 (Reuters) - Hong Kong Exchanges and Clearing 0388.HK units said on Friday they will begin accepting China Government Bonds as eligible non-cash collateral from November 2.

Here are the details:

  • The bourse operator had first announced such plans in late September, potentially providing market participants with broader collateral choices and more efficient use of capital.

  • HKEX derivatives clearing houses — HKFE Clearing Corporation and the SEHK Options Clearing House — will cover margin requirements through China Government Bonds.

  • CGBs are bonds issued by the Ministry of Finance and offered primarily in the international market as well as bonds traded in the China Interbank Bond Market and offered primarily in the domestic market.

  • "HKEX is committed to supporting greater flexibility in collateral management, enhancing capital efficiency for market participants and contributing to the continued development of Hong Kong's fixed-income and RMB ecosystem," HKEX Chief Operating Officer Vanessa Lau said.

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