Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) plans to advance a series of key initiatives over the next six months to enhance the fixed income and currency markets in Hong Kong, focusing on four main pillars: promoting issuance, increasing liquidity, expanding offshore RMB business, and developing new generation infrastructure [1][2] Group 1: Key Initiatives - The SFC aims to attract more local and overseas issuers to utilize Hong Kong as a financing hub, thereby promoting issuance [1] - To increase liquidity, the SFC will implement an over-the-counter fixed income and currency derivatives system and promote the development of a central counterparty for repurchase transactions in Hong Kong [2] - The expansion of offshore RMB business will involve enhancing the application of offshore RMB, improving connectivity mechanisms, and increasing the supply of RMB-related products [2] Group 2: Infrastructure Development - The SFC will prepare for infrastructure development in the fixed income and currency markets to support the new generation of electronic trading platforms [2] - The application of tokenized fixed income and currency products will be implemented as part of the new generation infrastructure initiatives [2]

Core Viewpoint - The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority have jointly released a "Roadmap for the Development of Fixed Income and Money Markets," aiming to position Hong Kong as a global hub for fixed income and currency markets [1] Group 1: Roadmap Objectives - The roadmap is expected to provide a broader range of investors with opportunities to participate in and invest in various types of bond instruments through the Hong Kong market [1] - Hong Kong will advance existing measures and explore targeted new measures to attract more high-quality investors, such as optimizing tax incentives applicable to single family offices and funds [1] Group 2: Strategic Alignment - The four pillars and ten measures outlined in the roadmap are highly aligned with UBS's business strategy, indicating a strong synergy between the roadmap's goals and the bank's operational focus [1]

Group 1 - The People's Bank of China announced the central parity rate of the RMB against the USD at 7.1152, a depreciation of 34 basis points from the previous day's rate of 7.1118 [1] - As of 9:36 AM, the onshore RMB was trading at 7.1349 against the USD, showing a daily depreciation of 0.04%, while the offshore RMB was at 7.1433, reflecting a daily appreciation of 0.03% [1] Group 2 - The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority jointly released a roadmap for the development of the fixed income and currency markets, aiming to strategically position Hong Kong as a global hub for fixed income [1]

Group 1 - The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority jointly released a "Roadmap for the Development of Fixed Income and Money Markets," aiming to strategically position Hong Kong as a global fixed income hub through demand, liquidity, and innovation [1] - The roadmap outlines four key pillars: primary market issuance, secondary market liquidity, offshore RMB business, and next-generation infrastructure, serving as a blueprint for future policy formulation and implementation [1] - Ten initiatives are proposed to consolidate Hong Kong's existing advantages, including attracting issuers to use Hong Kong as a fundraising hub and enhancing the scale and liquidity of offshore RMB usage [1] Group 2 - Tianfeng Securities noted that the current bond market is characterized by volatility, driven by market sentiment, institutional behavior, and liquidity, which influence the pricing of both bullish and bearish factors [2] - Guosheng Securities observed a significant increase in the turnover rate of ultra-long bonds in 2023, indicating a shift from a holding to a trading strategy, which has led to a premium in ultra-long bond prices [5] - Despite a recent decline in ultra-long bond prices, interest in these bonds remains high, with a monthly turnover rate of 7.6% in August, reflecting strong liquidity [5]

Core Insights - The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority jointly released the "Roadmap for the Development of Fixed Income and Money Markets," aiming to position Hong Kong as a global hub for fixed income and currency markets through ten key measures focused on demand, liquidity, and innovation [1][2] Group 1: Key Measures and Objectives - The roadmap outlines four pillars: primary market issuance, secondary market liquidity, offshore RMB business, and new generation infrastructure [1] - The measures are designed to support the sustainable and diversified development of Hong Kong's capital markets over the coming years [1] Group 2: Market Positioning - Hong Kong is recognized as Asia's leading bond market and international financial center, with a strong international reputation in fixed income [1] - The unique advantage of Hong Kong's bond market lies in its ability to connect mainland investors with international issuers, facilitated by the Bond Connect "southbound" scheme [1] Group 3: Offshore RMB Market - Hong Kong remains the largest offshore RMB center and the primary location for the issuance of dim sum bonds, with total issuance reaching 475 billion RMB by the end of August 2023 [2] - The annual issuance of dim sum bonds is expected to exceed the previous record of 700 billion RMB, indicating robust market growth [2] Group 4: Market Sustainability - The health and sustainability of the bond market depend on the availability of efficient risk management tools, which include optimizing offshore bond repurchase agreements and enhancing secondary market liquidity [2] - Expanding the variety of products available in the market will not only increase potential returns for bondholders but also help to grow the RMB liquidity pool in Hong Kong [2]

Core Insights - The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) held the first Hong Kong Fixed Income and Currency Forum, focusing on strategic insights and visions for the fixed income and currency markets in Hong Kong and the Asia-Pacific region [1][2] Group 1: Market Opportunities - The fixed income and currency markets are essential tools for risk management and enhancing resilience, presenting significant growth opportunities for issuers, investors, and intermediaries [1] - Hong Kong aims to create a more vibrant fixed income investment ecosystem, generating lasting value and new opportunities for international issuers and investors [2] Group 2: Strategic Initiatives - Key initiatives include strengthening market infrastructure, enhancing market liquidity, and embracing financial innovation, such as tokenization of real assets [2] - The SFC plans to expand the issuance of RMB fixed income products and improve the liquidity of the offshore RMB fixed income market [2][3] Group 3: Regulatory Enhancements - The People's Bank of China (PBOC) will increase the daily trading net limit for interest rate risk management from 20 billion RMB to 45 billion RMB, facilitating investor participation [3] - The PBOC will support various foreign institutional investors in engaging in bond repurchase activities in the Chinese bond market, enhancing the efficiency of RMB bond usage [3]

Core Viewpoint - The 2025 Policy Address by Hong Kong Chief Executive John Lee emphasizes measures to enhance Hong Kong's status as a leading international financial center, with a focus on strengthening the stock market, optimizing listing systems, and promoting innovation in digital assets [1][2]. Group 1: Financial Market Development - The Hong Kong Securities and Futures Commission (SFC) welcomes the measures in the Policy Address aimed at supporting Hong Kong's continuous development as a leading international financial center [2]. - Suggestions to include Renminbi counters and Real Estate Investment Trusts (REITs) in the Stock Connect program are expected to deepen ties between Hong Kong and mainland markets [2]. - The SFC believes that promoting bond issuance, establishing a commercial repurchase market, and launching government bond futures will inject vitality into the fixed income and currency markets, enhancing Hong Kong's attractiveness to global investors [2]. Group 2: Collaboration and Innovation - The SFC Chairman emphasizes the commitment to maintaining Hong Kong's traditional advantages in fundraising and connectivity while pursuing innovation and diversification for future success [3]. - The Hong Kong Exchanges and Clearing Limited (HKEX) expresses support for the measures in the Policy Address, which cover both primary and secondary markets, and aim to broaden Hong Kong's financial ecosystem [3][4]. - HKEX's CEO highlights the importance of building a diverse asset ecosystem in Hong Kong to connect capital with opportunities, supported by the government's ongoing initiatives [4]. Group 3: SME Financing Support - Following the Policy Address, the Hong Kong Monetary Authority (HKMA) introduced new measures under the "SME Financing Guarantee Scheme," extending the application period for 80% credit guarantee products until March 2028 [4]. - The total credit guarantee amount will increase by HKD 20 billion to HKD 310 billion, and the "interest-only" repayment arrangement will be extended for another year [4].

Group 1 - The Hong Kong Securities and Futures Commission (SFC) welcomes measures in the Chief Executive's 2025 Policy Address aimed at supporting Hong Kong's development as a leading international financial center [1] - The Policy Address includes suggestions to strengthen the stock market and optimize the listing system, reinforcing Hong Kong's position as a preferred global listing venue [1] - The proposal to include Renminbi counters and Real Estate Investment Trusts (REITs) in the Stock Connect is expected to deepen the connection between Hong Kong and mainland markets [1] Group 2 - The focus on promoting bond issuance, establishing a commercial repurchase market, launching government bond futures, and enhancing financial infrastructure aims to further develop the fixed income and money markets [1] - These measures are anticipated to inject vitality into the diversification of Hong Kong's market and enhance its attractiveness to global investors [1] - The SFC is collaborating closely with the Hong Kong Monetary Authority to formulate a comprehensive roadmap for the fixed income and money markets, with discussions planned at the Hong Kong Fixed Income and Currency Forum on September 25 [1][2] Group 3 - The SFC Chairman emphasizes the commitment to consolidating Hong Kong's traditional advantages in fundraising and connectivity while pursuing innovation and diversification for future success [2] - The SFC will continue to collaborate with stakeholders in Hong Kong, mainland China, and internationally to promote the long-term stable development of Hong Kong's capital markets [2] - The upcoming forum aims to provide a platform for participants from significant financial institutions, senior government officials, and regulatory bodies to exchange strategic insights and discuss the latest developments in the Asia-Pacific fixed income and currency markets [2]

Core Insights - The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) will jointly host the Hong Kong Fixed Income and Currency Forum 2025 on September 25 [1] - Hong Kong is recognized as a leading international bond issuance center in Asia and the fourth largest foreign exchange market globally, actively seeking ways to strengthen its position in the fixed income and currency markets [1] Group 1 - The forum aims to provide an interactive platform for participants in the fixed income and currency markets, including senior executives from major financial institutions, senior government officials, and regulatory bodies [1] - The event will facilitate the exchange of strategic insights and visions regarding the development of Hong Kong's fixed income and currency markets [1] - Discussions will include perspectives on policies related to Hong Kong in this sector and the latest developments in the Asia-Pacific fixed income and currency markets [1]

Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) is actively collaborating with mainland regulatory authorities to advance the inclusion of a Renminbi (RMB) stock trading counter into the Hong Kong Stock Connect, with technical preparations progressing smoothly and implementation details expected to be announced soon [1][3]. Group 1: Development of RMB Fixed Income Market - One of the key focuses for the SFC this year is the development of the fixed income and currency markets, particularly the RMB fixed income market [2]. - The issuance of offshore RMB bonds in Hong Kong has seen rapid growth, with the total amount surpassing 1 trillion yuan in 2024, representing a 37% year-on-year increase [3]. - The Ministry of Finance has increased the frequency and scale of issuing national bonds in Hong Kong, particularly mid- to long-term bonds, to better meet international investors' needs [3]. Group 2: Enhancing Market Liquidity - The SFC aims to enhance the liquidity of the secondary bond market, which will provide issuers with more competitive pricing conditions and a broader investor base [4]. - The development of derivative instruments is crucial for bond investors to hedge risks and manage liquidity [4]. Group 3: Infrastructure Development for Offshore RMB Products - The SFC supports financial institutions in developing more attractive and diversified derivative products, including interest rate, foreign exchange, and credit derivatives [5]. - There is an understanding of the market's expectation for the prompt launch of national bond futures, with ongoing collaboration with mainland regulatory bodies to advance preparations [5]. - The establishment of an offshore RMB-related product infrastructure, including front and back office systems, is being researched to enhance the stability of Hong Kong's financial system and provide an efficient and transparent trading platform for offshore RMB assets [5].