HKEX’s new five-year China government bond futures recorded cumulative turnover
of 13,270 contracts in its first week, with average daily volume above 2,000
contracts, drawing heavy domestic and international institutional participation.
Trading was orderly and market participants say the offshore contract is
tracking onshore bond yields closely, is beginning to serve a price-discovery
role, and reflects offshore liquidity and investor expectations. A foreign
broker fixed-income trader said the contract fills a gap in offshore medium-term
rate hedging and provides an efficient, transparent tool for managing duration
in RMB bond portfolios.
