Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) is focusing on the development of the fixed income and currency markets, with a particular emphasis on the RMB fixed income market, in response to the ongoing discussions about the dominance of USD assets and the need for investors to diversify their portfolios [2][3]. Group 1: Development of RMB Fixed Income Market - The SFC aims to increase the issuance of primary market fixed income products to enrich the supply of RMB products, with offshore RMB bond issuance in Hong Kong surpassing 1 trillion yuan in 2024, marking a 37% year-on-year increase [3]. - The Ministry of Finance has increased the frequency and scale of issuing government bonds in Hong Kong, particularly focusing on medium- to long-term bonds to meet international investors' needs [3]. - The SFC is working closely with mainland regulatory bodies to incorporate RMB stock trading counters into the Hong Kong Stock Connect, with technical preparations progressing smoothly [3][4]. Group 2: Enhancing Market Liquidity - The SFC is focused on improving the liquidity of the secondary bond market, which will provide issuers with more competitive pricing conditions and a broader investor base [3]. - The development of derivative instruments is deemed essential for bond investors to hedge risks and manage liquidity effectively [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 [4]. - There is an understanding of the market's expectation for the prompt launch of government bond futures, with ongoing collaboration with mainland regulatory authorities to advance preparations [4]. - The establishment of infrastructure for offshore RMB-related products, including front-end trading systems and back-end support systems, is being researched to enhance the stability of Hong Kong's financial system [4].