China will double down on its support for Hong Kong as a global hub for the offshore yuan, with Beijing\u2019s top market regulator saying that the city could soon begin offering trading of yuan-denominated treasury bond futures.<\/p>\n
Beijing would support Hong Kong launching five-year Chinese government bond futures in the near term, making it easier for overseas investors to put long-term asset allocations into yuan assets, said Wu Qing, chairman of the China Securities Regulatory Commission (CSRC) at the annual Lujiazui financial forum in Shanghai on Wednesday, without giving a time frame.<\/p>\n
His comment indicates that the much hoped-for financial derivative product may materialise soon in the city after lengthy regulatory discussions. An official launch could help Beijing serve its ambition of yuan internationalisation amid the diminishing role of the US dollar, while solidifying Hong Kong\u2019s status as a global financial hub and the world\u2019s biggest centre for offshore yuan transactions.<\/p>\n
\u201cThe listing of [Chinese government bond] futures in Hong Kong has been discussed for a long time,\u201d said Zhang Zhiwei, chief economist at Pinpoint Asset Management in Hong Kong. \u201cThe announcement at the Lujiazui conference indicates the listing will likely happen soon. It would be a meaningful step forward to promote the offshore renminbi market.\u201d<\/p>\n
Demand for yuan assets has been rising as Middle East hostilities and fiscal stress on the US government prompt global investors to diversify from the US dollar. The yield on China\u2019s benchmark 10-year government bond dropped close to a one-year low of 1.73 per cent, while the yuan strengthened to the highest level against the US dollar in three years.<\/p>\n
The offering of the offshore fixed-income financial derivative is the latest effort by Hong Kong to retain overseas investors, with some rotating out of the city\u2019s stock market to South Korea and Taiwan for more exposure to AI. Lack of financial derivative products has been highlighted by overseas investors as a key concern for boosting their yuan-asset holdings.<\/p>\n","protected":false},"excerpt":{"rendered":"China will double down on its support for Hong Kong as a global hub for the offshore yuan,…\n","protected":false},"author":3,"featured_media":873191,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[9710,64,74,173285,347231,79,8464,355064,355065,355066,6043,67,132,68,15393,347229,167038,274339,355063],"class_list":["post-873190","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing","tag-business","tag-china","tag-china-securities-regulatory-commission","tag-csrc","tag-economy","tag-hong-kong","tag-lujiazui","tag-lujiazui-financial-forum","tag-pinpoint-asset-management","tag-shanghai","tag-united-states","tag-unitedstates","tag-us","tag-us-dollar","tag-wu-qing","tag-yuan","tag-yuan-internationalisation","tag-zhang-zhiwei"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116764705624571665","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/873190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=873190"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/873190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/873191"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=873190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=873190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=873190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}