Hong Kong Securities Regulatory Commission Wong Tin Woo: China Securities Regulatory Commission's new initiatives to deepen market cooperation between the two places inject strong momentum into collaborative development

The Zhitong Finance App learned that Chairman of the Hong Kong Securities Regulatory Commission, Huang Tianyou, expressed his gratitude to China Securities Regulatory Commission Chairman Wu Qing for announcing a series of new initiatives to further deepen market cooperation and collaborative development between the two places, focusing on several core areas, including listing financing, product innovation, green finance, financial institution going global, and facilitation of professional qualifications, etc., to inject strong momentum into future collaborative development.

The 5-year Chinese treasury bond futures launched by the Hong Kong Stock Exchange went public this morning. Speaking at the listing ceremony, Huang Tianyou said that as the only Chinese treasury bond futures currently listed on the offshore market, they are of great significance, providing global investors with an effective tool to hedge against onshore interest risks and help continue to optimize asset allocation. On the other hand, it effectively enhances participation, liquidity and pricing efficiency in the treasury bond market, and further promotes two-way capital flows between mainland and overseas markets. He said that treasury bond futures are not only a major breakthrough in offshore products, but also an important milestone in the mainland financial market's process of promoting a high level of opening-up to the outside world and deepening the internationalization of the RMB. They are also a new starting point for breaking the waves.

He also believes that concerted efforts must be made to make treasury bond futures truly effective and further consolidate Hong Kong's position as an offshore RMB center and risk management center. Investors and asset managers should make good use of treasury bond futures to hedge interest rate risks, form effective complements with mechanisms such as swaps, improve offshore risk control systems, and steadily increase investment returns. He said that brokerage firms and futures companies should act as rational guides for customers, providing rich and steady products and services while deepening investor education. Industry associations and research institutes need to give full play to the role of think tanks, continuously enhance the professionalism and forward-looking vision of practitioners, and deepen their understanding of diversified investments and risk diversification. Regulators, exchanges and clearing houses need to shoulder the burden, continuously optimize systems and infrastructure, and lay a solid foundation for the launch of more treasury bond futures products in the future.

He pointed out that the Hong Kong Securities Regulatory Commission will continue to work closely with all parties to continue deepening the fixed income and currency markets and continuously expanding the depth and breadth of the offshore RMB market.