Hong Kong bond markets, yuan issuance to expand in 2026 under HKMA, SFC road map

Hong Kong is expected to spot a emergence successful enslaved issuance crossed aggregate currencies successful 2026, driven by rising request for non-US dollar assets amid geopolitical tensions and authorities initiatives to fortify the city's superior markets, according to manufacture players.

As portion of efforts to beforehand the section enslaved market, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) launched a blueprint successful September to grow yuan-linked products and widen the capitalist basal for fixed-income offerings.

Some measures person already been rolled out, specified arsenic the motorboat of the cross-border repo concern astatine the extremity of September. More initiatives were expected successful 2026, with the collateral absorption of repo transactions acceptable to displacement from manual to automated processes from February 2, according to the HKMA.

Do you person questions astir the biggest topics and trends from astir the world? Get the answers with SCMP Knowledge, our caller level of curated contented with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

"The roadworthy representation issued by the HKMA and the SFC is important successful mounting the absorption for the aboriginal improvement of the Hong Kong enslaved marketplace and currency trading," said John Lee Chen-kwok, vice-chairman and co-head of Asia sum astatine UBS successful Hong Kong, 1 of the starring arrangers of large enslaved deals successful the city.

"The Hong Kong enslaved marketplace is expected to proceed to turn successful 2026 aft beardown improvement implicit the past 2 years, with galore large names specified arsenic the Airport Authority Hong Kong, Urban Renewal Authority, MTR Corp, Hong Kong Mortgage Corp and the Hong Kong government."

Issuance had go much diversified, with bonds denominated successful Hong Kong dollars, yuan and US dollars, Lee said. "The maturation is owed to authorities promotion of the enslaved marketplace and besides the instauration of Bond Connect, which attracts much issuers to Hong Kong to pat mainland investors done the link scheme."

As portion of efforts to beforehand the section enslaved market, the Hong Kong Monetary Authority and the Securities and Futures Commission launched a blueprint to grow yuan-linked products. Photo: Shutterstock alt=As portion of efforts to beforehand the section enslaved market, the Hong Kong Monetary Authority and the Securities and Futures Commission launched a blueprint to grow yuan-linked products. Photo: Shutterstock>

Hong Kong dollar enslaved issuance reached a grounds HK$331 cardinal (US$42.5 billion) arsenic of November, astir 37 per cent higher than 2024's full-year full of HK$242 billion.