Hong Kong launches a new financial blueprint! The Securities and Futures Commission collaborates with the Monetary Authority to create a global fixed income and currency center.

On September 25, 2025, the Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) officially announced the "Fixed Income and Currency Market Development Roadmap" (hereinafter referred to as the "Roadmap"), proposing ten specific measures to comprehensively position Hong Kong as an international center for Fixed Income and Currency (FIC) products, ranging from promoting market demand, enhancing Liquidity, to fostering innovative technology.

This blueprint is formulated based on the research results of the "Fixed Income and Currency Task Force" established in 2024, covering four pillars: primary market, secondary market, offshore RMB business, and new generation financial infrastructure. Below are the key points and strategic breakdown of the "Roadmap."

Primary Market Issuance: Attract global capital, led by government innovation

1. Government bonds lead market development

Since 2019, the Hong Kong SAR government has issued approximately HKD 386 billion in multi-currency bonds, including the world’s first tokenized green bonds. In 2025, it will also launch 30-year RMB and HKD infrastructure bonds for the first time, establishing a market benchmark for the yield curve. The Monetary Authority will continue to support bond issuance and collaborate with the Ministry of Finance of the Mainland to issue offshore Chinese government bonds.

2. Promote Hong Kong as a fundraising and investment hub

Through global roadshows and continuous marketing, Hong Kong has attracted investors from over 30 markets across Asia, the Middle East, Europe, and the Americas. In the future, it will actively promote to issuers in Southeast Asia, the Middle East, and the mainland, and launch funding programs targeting green and digital finance to attract bond issuance activities.

3. Expand the investor base to attract family offices and treasury centers.

With the inclusion of more mainland financial institutions under the "Southbound Link", the Monetary Authority and the Securities and Futures Commission will further introduce tax incentives to attract family offices and corporate treasury centers to set up operations in Hong Kong, thereby strengthening the investor network.

Secondary market activation: Enhance liquidity, build a transparent and efficient trading environment

4. Implementing a regulatory and licensing system for over-the-counter derivatives.

The Securities and Futures Commission plans to fully implement a licensing system for over-the-counter derivatives, including foreign exchange forwards and interest rate swaps, and proposes reforms to capital requirements to reduce trading costs, strengthen regulatory fairness, and attract international investment banks to establish a presence in Hong Kong.

5. Establish a repurchase transaction central counterparty (CCP)

To reduce settlement risks and enhance the efficiency of the repurchase market, Hong Kong will study the establishment of a repurchase transaction CCP, with a priority focus on Chinese government bonds, and consider a phased approach to match the pace of local market development.

Offshore Renminbi Business: Amplifying the Strategic Value of Renminbi Internationalization

6. Expand the application scenarios of the Renminbi

Hong Kong has handled 70% of global offshore RMB payments, and the dim sum bond market has reached RMB 1 trillion. In the future, it will continue to expand RMB-denominated products, such as the dual-counter mechanism, ETFs, and more asset classes, creating diverse application scenarios.

7. Improve interconnectivity and launch government bond futures

Enhance liquidity and the flexibility of fund utilization through mechanisms such as "Bond Connect," "Swap Connect," and cross-border repurchase agreements. There are also plans to launch offshore government bond futures and cross-border repurchase business in Renminbi to support risk management needs.

New Generation Financial Infrastructure: Fully Embracing Technology and the Tokenization Wave

8. Strengthen infrastructure to embrace the future of digital finance.

The Monetary Authority has established "Fast Clearing Settlement" to promote the upgrade of the Centralized Settlement System (CMU), creating an Asia-leading digital asset custody platform. The plan integrates Distributed Ledger Technology (DLT) and digital currency payment applications to enhance cross-border settlement efficiency.

9. Build a local electronic trading platform

Hong Kong will study the creation of a dedicated electronic trading platform for fixed income and currency, enhancing transparency, price discovery, and market efficiency, with solutions specifically designed to address issues such as non-centralized quoting and liquidity fragmentation.

10. Tokenization use cases landing, accelerating market innovation

The government and regulatory agencies support the implementation of bond tokenization, including the issuance of multi-currency token bonds and digital deposit settlement. Through the "Ensemble Project," applications such as interbank transfers, corporate fund management, and asset tokenization are tested to accelerate commercialization.

Aiming for global capital flow, Hong Kong takes off again.

As the world's fourth largest foreign exchange market, the largest offshore Renminbi center, and a leader in Asian international bonds, Hong Kong has unique advantages in developing into a global FIC hub. The "Roadmap" demonstrates the determination of the Securities and Futures Commission and the Monetary Authority to promote institutional innovation and market development.

In the coming years, these ten measures will become the core engine for advancing the diversification, digitization, and internationalization of Hong Kong's finance, driving Hong Kong to reshape its international leadership position in the rapidly changing financial landscape.

This article is about Hong Kong launching a new financial blueprint! The Securities and Futures Commission and the Monetary Authority join forces to create a global fixed income and currency center, first appearing in Blockchain News ABMedia.