Overview

• Deputy Governor Zou Lan outlined new initiatives at a Hong Kong forum to make onshore yuan bonds more usable for international investors.
• The central bank will expand the pool of Swap Connect market makers and raise the daily net trading limit to 45 billion yuan from 20 billion yuan.
• Foreign institutions will be supported in conducting repo transactions to improve liquidity and the usage efficiency of yuan bonds.
• Authorities are working to have onshore yuan bonds recognized as eligible collateral in Hong Kong and in global markets.
• Preparations will be accelerated for yuan-denominated government bond futures in Hong Kong, with officials noting a 192 trillion yuan market and foreign holdings near 2% as they stress continued investor confidence.