OTC Settlement in Hong Kong will accept onshore treasury bonds and policy financial bonds as performance collateral for Derivatives transactions

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On January 13, the Hong Kong Stock Exchange welcomed the announcement of Central Bank, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority today to support foreign investors to use the onshore treasury bonds and policy financial bonds in Bond Connect Holdings as the Derivatives transaction performance collateral of the Hong Kong OTC Settlement Company under the Hong Kong Exchange. This measure will effectively revitalize the onshore bond holdings of foreign investors, increase their willingness to allocate onshore RMB bonds, and further promote the internationalization of the RMB. OTC derivatives provided by OTC Settlement in Hong Kong include Intrerest Rate Swaps (including Intrerest Rate Swaps under Northbound Swap Connect), non-deliverable forward FX contracts, cross-currency swaps and foreign exchange contracts.

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