HKEX derivatives clearinghouses to accept Chinese government bonds, policy bank bonds, and MOF offshore bonds as non-cash collateral starting November 2026
HKEX announced that its wholly owned derivatives clearinghouses, HKCC and SEOCH, plan to include Chinese government bonds and policy bank bonds held under Northbound Bond Connect, as well as MOF bonds issued offshore by the Ministry of Finance, as eligible non-cash collateral for margin requirements starting November 2026. The arrangement remains subject to regulatory approval. This expansion applies to all derivatives products cleared by the two clearinghouses, aiming to provide market participants with more flexible collateral options and improve capital efficiency. The relevant launch date will be announced separately, and detailed rules are available in the circulars issued by HKCC and SEOCH on the same day.
Key Takeaways:HKEX has clarified the bond categories, applicable clearinghouses, and effective date for newly eligible non-cash collateral, allowing derivatives participants to adjust their margin collateral arrangements accordingly.