China Unveils 10 Policy Measures to Expand Financial Cooperation with Hong Kong

China's top securities regulator announced ten policy initiatives on August 3, 2026, aimed at deepening financial integration between mainland China and Hong Kong. Speaking at the launch ceremony for 5-year offshore RMB Treasury bond futures at the Hong Kong Exchanges and Clearing, CSRC Chairman Wu Qing emphasized enhancing risk management tools for foreign investors, streamlining cross-border corporate listings, and expanding the scope of market connectivity schemes. The moves come as global investor holdings of Chinese onshore bonds reach 3.2 trillion yuan.

With international investors holding more than 3.2 trillion yuan in mainland Chinese bonds, the introduction of offshore RMB Treasury bond futures fills a major gap in interest rate risk management tools. This initiative aims to reassure foreign investors, attract long-term foreign capital into Chinese capital markets, and reinforce Hong Kong's role as the premier global offshore RMB hub.

On August 3, 2026, China Securities Regulatory Commission (CSRC) Chairman Wu Qing unveiled ten policy measures in Hong Kong designed to strengthen capital market cooperation between mainland China and the offshore hub, according to reports from People's Daily and Securities Times. The announcement coincided with the official trading launch of 5-year RMB Treasury bond futures on the Hong Kong Exchanges and Clearing. Wu noted that international holdings of Chinese onshore bonds have climbed to 3.2 trillion yuan, making robust interest rate risk management tools increasingly critical. The introduction of offshore Treasury futures is intended to provide global investors with efficient hedging instruments while assisting in the development of a resilient yield curve across onshore and offshore markets. Highlighting equity market integration, Wu revealed that more than 270 mainland enterprises have completed regulatory filing procedures for Hong Kong listings since 2024, raising over 650 billion Hong Kong dollars. Mainland companies now account for roughly 80 percent of total market capitalization and 90 percent of turnover in the Hong Kong stock market. A growing cohort of industry leaders in new energy, artificial intelligence, healthcare, and consumer sectors has helped optimize the market structure of the Hong Kong stock exchange. Wu also detailed progress on the decade-old Stock Connect program, noting that its market capitalization coverage across dual-way stock targets now exceeds 90 percent. Regulators in Beijing and Hong Kong are actively preparing to incorporate RMB stock trading counters and Real Estate Investment Trusts (REITs) into the Connect framework. According to People's Daily, the CSRC's ten-point package includes supporting onshore companies to list in Hong Kong and eligible Hong Kong-listed firms to list onshore; fast-tracking registration for regular stock Exchange Traded Funds (ETFs); supporting more RMB-denominated futures products; introducing climate transition disclosure financial pilots for listed firms; and simplifying procedures for Hong Kong banking professionals applying for mainland practitioner qualifications. Regulators also pledged to strengthen joint market oversight and risk-monitoring cooperation.