Hong Kong’s listed-derivatives clearing houses have widened the Chinese bonds that market participants may lodge as non-cash margin collateral, bringing onshore government and policy-bank debt into the framework through Northbound Bond Connect.
From 2 November 2026, HKCC and SEOCH accept eligible onshore Chinese government bonds and policy-bank bonds held through the northbound channel, alongside eligible offshore Chinese government bonds. The change allows participants to meet margin obligations with a broader pool of renminbi assets instead of converting those holdings into cash or other accepted collateral.
Eligibility does not mean every bond is accepted without limit. Clearing-house valuation, haircut, concentration and operational rules continue to govern how much collateral value is recognised. The arrangement therefore changes the available asset pool while preserving the clearing houses’ authority to manage liquidity and default risk.
Accommodation charges for the relevant collateral have also been reduced to 0.15% a year. The initiative builds on earlier acceptance of Chinese government bonds within Hong Kong’s over-the-counter clearing infrastructure and extends that use to listed derivatives.
The measure links mainland bond holdings more closely to Hong Kong’s clearing system, but it is a collateral reform rather than a relaxation of trading or investor-eligibility rules. The Securities and Futures Commission announced the start date, and Hong Kong Exchanges and Clearing has published an official operational explanation of the eligible assets and clearing arrangements.
