HSBC amongst first to trade new China Bond Futures on HKEX

It is cash-settled, priced against a basket of onshore China Government Bonds.

HSBC completed among the first trades of Hong Kong Exchanges and Clearing's (HKEX) newly launched Five-Year China Government Bond (CGB) Futures, supporting the market on day one as a Liquidity Provider.

The bank executed trades for several clients, including Bank of Communications (Hong Kong), Malayan Banking Berhad, and China CITIC Bank International.

The contract is the only offshore CGB futures product available and is designed to help investors hedge Renminbi-denominated bond exposure.

It is cash-settled, priced against a basket of onshore CGBs, and eliminates delivery, custody, and settlement complexity for offshore holders.

Trading is available on Hong Kong public holidays, except New Year's Day.