CSRC Announces Five Major Cooperation Initiatives to Upgrade Two-Way Market Opening

On August 3, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), stated at the launch ceremony for RMB treasury bond futures in Hong Kong that further policy measures will be introduced to deepen two-way pragmatic cooperation and support the development of Hong Kong's capital market, better support cross-border two-way financing for enterprises, make it more convenient for global investors to allocate Chinese assets, provide greater space for institutional cooperation and talent integration, jointly maintain the stable operation of both markets, and contribute more Chinese wisdom to global financial development.

Timely Launch of RMB Treasury Bond Futures

Wu Qing pointed out that treasury bond futures are one of the most representative interest rate derivatives in international financial markets, playing an increasingly important role in the modern financial system. Currently, international investors hold 3.2 trillion CNY in Chinese bonds, and the demand for interest rate risk management is growing. The launch of 5-year RMB treasury bond futures in Hong Kong on August 3 can be described as timely and natural. The coordinated opening of onshore and offshore markets can not only provide international investors with convenient and efficient interest rate risk management tools, helping foreign investors hold Chinese bond assets with greater confidence, but also promote closer linkage between treasury bond spot, futures, and derivatives markets in both regions, building a more resilient and effective treasury bond yield curve.

Wu Qing stated that in the long run, the implementation and deepening of this important product will further enrich offshore RMB use cases, strengthen Hong Kong's role as a global offshore RMB business hub, and better enhance the quality and efficiency of financial services for the real economy.

Over 270 Mainland Enterprises Complete Filing for Hong Kong Listing

Wu Qing noted that the CSRC resolutely implements the central government's decisions and arrangements, placing support for Hong Kong's development as an international financial center in a prominent position. Taking the launch and implementation of the "Five Measures for Hong Kong" and other policy measures as an opportunity, the CSRC is deepening comprehensive pragmatic cooperation with Hong Kong counterparts across markets, institutions, and products, injecting new vitality and momentum into capital market development.

Regarding support for enterprises seeking Hong Kong listings, Wu Qing stated that the CSRC has significantly optimized the overseas listing filing process, improved standardization and transparency, and actively supports qualified mainland enterprises in listing in Hong Kong. Since 2024, over 270 mainland enterprises have completed filing for Hong Kong listings, raising over HK$650 billion. Currently, mainland enterprises account for approximately 80% and 90% of the total market capitalization and trading volume of Hong Kong-listed companies, respectively. A number of leading and emerging enterprises in new energy, new consumption, biomedicine, and artificial intelligence have listed in Hong Kong, continuously optimizing the structure of the Hong Kong stock market and significantly enhancing its influence and attractiveness to global capital.

Regarding the deepening of mutual market access, Wu Qing introduced that as the first "capital bridge" connecting the two markets, Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect have been operating smoothly for over 10 years, with continuously expanding scope of eligible targets and product types, and increasing two-way stock target market capitalization coverage rates, both now exceeding 90%. Currently, the CSRC, together with Hong Kong counterparts, is stepping up preparations for RMB stock trading counters and the inclusion of REITs in Stock Connect.

Regarding the promotion of institutional and product cooperation, Wu Qing stated that the CSRC actively supports mainland institutions in using Hong Kong as a starting point to "go global." Currently, 103 mainland securities, fund, and futures companies have established branches in Hong Kong, with steadily expanding business scopes. With the launch of MSCI A50 index futures in Hong Kong, the continuous deepening of mainland-Hong Kong ETF cross-listing and fund mutual recognition arrangements, strong support has been provided for Hong Kong's international asset management and wealth management center functions.

"We are full of confidence in Hong Kong's future prosperity and development," Wu Qing emphasized. These achievements are the result of strong support from the central government and active leadership from the SAR government, as well as the close coordination and joint efforts of regulatory agencies and market participants on both sides. Practice has fully proven that Hong Kong, backed by the motherland and connected to the world, has incomparable development potential and unique advantages.

Five Areas for Deepening Two-Way Cooperation

Wu Qing pointed out that at this critical historical juncture, the country has formulated and implemented the "15th Five-Year Plan," making strategic arrangements for high-quality economic development and accelerating the building of a financial powerhouse. Actively aligning with national strategies and integrating into and serving the national development landscape is the shared responsibility of both capital markets.

First, focusing on "functional synergy" to better support cross-border two-way financing for enterprises. The CSRC will continue to support mainland enterprises expanding internationally in seeking Hong Kong listings, support quality Hong Kong-listed companies in seeking mainland listings, and actively support qualified Hong Kong enterprises in issuing bonds in the mainland.

Second, focusing on "product synergy" to make it more convenient for global investors to allocate Chinese assets. The CSRC will support index companies in both markets in launching more indices based on Chinese assets, promoting more ETF products aligned with China's modern industrial system, and support Hong Kong in launching more RMB-denominated and RMB-settled futures products.

Third, focusing on "ecosystem synergy" to provide greater space for institutional cooperation and talent integration. The CSRC will support more high-quality securities and fund companies in establishing operations in Hong Kong and study expanding the scope of mutual recognition of securities and futures professional qualifications between the two markets.

Fourth, focusing on "regulatory synergy" to jointly maintain the stable operation of both markets. The CSRC will further strengthen regulatory cooperation with Hong Kong regulators, deepen cooperation in issuance, listing, intermediaries, and regulatory enforcement, and strengthen cross-border capital flow risk monitoring and coordinated response.

Fifth, focusing on "governance synergy" to contribute more Chinese wisdom to global financial development. The CSRC will strengthen cooperation with Hong Kong regulatory authorities under bilateral and multilateral mechanisms, promote pilot programs for sustainable information disclosure by listed companies, and deepen experience exchange in frontier innovation areas such as artificial intelligence and blockchain, enhancing China's participation and influence in global financial governance.