Hong Kong to launch 5-year RMB treasury bond futures on Aug. 3

HONG KONG, June 18 (Xinhua) -- Hong Kong will start offering five-year RMB treasury bond futures from Aug. 3, the Securities and Futures Commission of Hong Kong said on Thursday.

The launch will provide international investors with an effective offshore hedging tool to meet their growing need for managing government bond-related risks, said the commission.

The move will consolidate Hong Kong's position as a bond center by encouraging international investors to hold RMB treasury bonds on a long-term basis, said John Lee, chief executive of the Hong Kong Special Administrative Region (HKSAR).

Financial Secretary of the HKSAR Government Paul Chan credited the launch with enhancing Hong Kong's ecosystem of RMB-denominated products and deepening mutual market access with the Chinese mainland. It can foster the development of structured products, as well as asset management and risk management services, he said.

The Hong Kong Exchanges and Clearing Limited has been preparing for the launch and will announce further details of the contract. Enditem