When the Hong Kong stock exchange launched five-year China government bond futures on August 3, it did more than simply expand the city’s derivatives product suite. As the only China government bond futures in the offshore market, the contract deserves attention as it finally gives international investors an exchange-traded tool to hedge against yuan interest…
When Hong Kong launched its latest Connect programme on July 7, most of the attention focused on gold. That misses the bigger story. Delivery Connect, part of the city’s new gold clearing and settlement system, is not simply another financial initiative but the latest evidence that Beijing has settled on a distinctive model for opening…
Companies in Hong Kong moved swiftly on Monday to take advantage of a new Swap Connect rule that lets them hedge using China’s onshore loan prime rate (LPR), as demand rises to manage yuan interest-rate risks. The measure, which was introduced by mainland China and Hong Kong regulators in May and went live on Monday,…