Hong Kong Exchanges and Clearing (HKEX) has begun accepting eligible renminbi (RMB) bonds as non-cash collateral for margin requirements at its listed derivatives clearing houses.
Seven institutions posted more than RMB 400 million worth of eligible bonds on the first day, 2 November 2026.
HKFE Clearing Corporation Limited (HKCC) and The SEHK Options Clearing House Limited (SEOCH) now accept China Government Bonds and Policy Bank Bonds held through Northbound Bond Connect, collectively known as Bond Connect Securities.
Offshore bonds issued by China’s Ministry of Finance (MOF Bonds) are also eligible.
Expansion gives participants more collateral options
The arrangement allows clearing participants to meet margin requirements without selling their bond holdings or converting them into cash.
HKEX said the expansion provides greater flexibility in managing liquidity and funding while allowing participants to diversify their collateral holdings.
HKCC and SEOCH are the first listed derivatives clearing houses outside mainland China to accept China Government Bonds as collateral, according to HKEX.
“We are encouraged by the active first-day participation in our expanded collateral framework,”
said Gregory Yu, HKEX’s Head of Markets.
“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,”
he added.
HKEX extends existing OTC Clear arrangements
The expansion builds on HKEX’s existing collateral framework at OTC Clear, which began accepting MOF Bonds in 2017 and Bond Connect Securities in 2025.
As of September 2026, these bonds accounted for approximately 16% of OTC Clear’s total margin balance.
The Securities and Futures Commission (SFC), Hong Kong Monetary Authority (HKMA) and People’s Bank of China announced their support for the arrangement on 7 July 2026.
HKEX subsequently outlined the expansion on 25 September.
HKCC and SEOCH have published the operational details, including applicable risk-management arrangements, in their respective clearing-house circulars.
Featured image credit: Edited by Fintech News Hong Kong, based on image by NovelHQ via Magnific
