Key facts
- HKEX plans to launch yuan-denominated gold futures next year.
- The exchange aims to boost the global influence of the yuan in pricing.
- HKEX will continue to broaden its pool of listed companies and explore more index products.
- The bourse aims to attract more international listings, particularly from Asia.
- HKEX is developing new businesses in data, analytics, index products, digital assets, and tokenisation.
Hong Kong Exchanges and Clearing (HKEX) is set to introduce more yuan-denominated investment products, with a Hong Kong-settled gold futures contract slated for launch next year, followed by other precious metals and commodity products. This initiative aims to enhance the global influence of the yuan in pricing.
HKEX CEO Bonnie Chan Yi-ting stated that the exchange will continue to expand its listed company base and explore new index products to strengthen its multi-asset ecosystem and capitalize on shifts in global capital allocation. The bourse is particularly focused on attracting international listings, especially from other Asian regions. New business areas such as data, analytics, digital assets, and tokenisation are also being developed to support core operations and accelerate capital flows.
Gregory Yu Hock-ken, HKEX's head of markets, noted the growing interest in yuan-denominated products, citing the nearly 3,000 contracts in open interest for the five-year Chinese government bond futures launched in August, which has attracted investors from various global regions. He also highlighted HKEX's involvement in a joint roadmap for developing fixed-income and currency markets.
Daryl Ho Hon-kit, executive director (external) at the Hong Kong Monetary Authority (HKMA), acknowledged that promoting yuan internationalization faces the challenge of global market reliance on the US dollar and a lack of corresponding treasury management tools for enterprises. He suggested that banks could transform customized client solutions into off-the-shelf products. Ho also mentioned Hong Kong's substantial yuan liquidity pool of approximately 1.1 trillion yuan, with the HKMA expanding its liquidity facility to 500 billion yuan to support market operations, trade, and investment.
Upcoming initiatives at HKEX include a market consultation on shortening the securities settlement cycle, the implementation of an uncertificated securities market, a review of the listing framework, and upgrades to derivatives trading platforms, alongside greater use of artificial intelligence in operations.