In the 2026 Policy Address (Chapter III, section on the International Financial Centre), the government sets out a strategy to consolidate and enhance Hong Kong's role as a global financial hub while deepening connections with both the Mainland and international markets. The overarching direction is to expand Hong Kong's capabilities in offshore Renminbi (RMB) business, fixed income, commodities, and securities—supported by reforms, new market infrastructure, and technology-driven innovation. At the same time, the policy links financial development with the upgrading of the real economy through green elements, digitalization, and innovation, positioning Hong Kong as a capital-financing gateway that remains globally oriented.
A key pillar is reinforcing Hong Kong as the global offshore RMB business hub. The Policy Address notes that in 2025 Hong Kong recorded a record RMB 935 billion in offshore RMB lending, and RMB bond issuance reached RMB 1 trillion for two consecutive years, demonstrating the market's scale and momentum. Building on this base, the government will expand liquidity tools and product channels, including enlarging the RMB Business Facility to RMB 500 billion with tenors extended up to three years and exploring enhancements to the currency swap arrangement with the People's Bank of China to strengthen offshore RMB liquidity. Additional measures include introducing a seven-day offshore RMB liquidity tendering mechanism and exploring offshore RMB short-term debt instruments to improve liquidity management products and help build an offshore RMB yield curve.
The policy address also prioritizes broadening the RMB product ecosystem and market references. Plans include expanding dim sum bond issuance and encouraging more issuers, while the HKEX will launch an Offshore RMB Bond Index to serve as a market reference and potential underlying index for ETFs. To diversify investor access and risk tools, the government signals exploration of expanding the Southbound Bond Connect product scope (including products with HKD and RMB bonds as underlying assets), preparing for RMB counters under Southbound Stock Connect, and enriching RMB foreign exchange futures after the launch of China Government Bond Futures. It also proposes expanding the acceptance of Northbound Bond Connect bonds as collateral across HKEX clearing houses and developing bond repo activity using Southbound Bond Connect bonds as collateral—aimed at improving asset efficiency for both local and non-local investors.
Beyond RMB, the government intends to strengthen Hong Kong as an international fixed-income hub. It highlights Hong Kong's role in arranging international bonds issued by Asia-based entities and points to new institutional and regulatory initiatives: the SFC will formulate internationally aligned standards for issuance and trading practices, while Bond Connect Company Limited will develop an electronic fixed income and currency trading platform in Hong Kong—starting with bond trading and gradually expanding to the money market and foreign exchange. The SFC will also encourage the HKEX to include a new reference rate under Swap Connect in Q4 of this year (2026) to help global investors manage RMB interest-rate risks, and the HKEX will explore a central clearing mechanism for bond repos to enhance liquidity.
A further growth engine is digital finance, especially digital bonds and tokenization. The Policy Address states that between 2025 and the first half of 2026, digital bonds issued in Hong Kong captured nearly 50% of the global market and sets out steps to regularize issuance, broaden use cases, and explore full lifecycle applications (including settlement and redemption processes). The HKMA will test the tokenization of Exchange Fund Bills by the end of the year, leveraging it to enable more efficient, round-the-clock use of over HK$1.3 trillion worth of Exchange Fund Bills for asset and liability management. Complementing this, CMU OmniClear will establish a digital asset platform that provides comprehensive services such as issuance and settlement for digital bonds, while expert groups will conduct legal reviews to support broader adoption of distributed ledger technology in capital markets.
Equity markets remain another central theme. The Policy Address cites strong market performance and notes that as of the end of August 2026, IPO fundraising exceeded HK$340 billion, surpassing the previous year's total. The government proposes consultations and reforms to keep listings competitive and attract quality overseas companies. Measures include a 2027 consultation on streamlining prospectus disclosure requirements, promoting dual primary and secondary listings (including from Southeast Asia and Belt and Road jurisdictions), and refining rules on notifiable/connected transactions and spin-offs to reduce compliance costs and increase corporate flexibility. The HKEX will also consult on specialist technology listing rule changes in the first half of next year (2027), including a review of market-cap thresholds. On the post-trade side, the HKEX is preparing for a "T+1" settlement cycle for the cash market (subject to coordination with relevant Mainland units) and is collaborating with the HKMA on a wholesale central bank digital currency payment solution for after-hours derivatives trading, with real-value transactions targeted for this year.
Finally, the policy address frames Hong Kong's next phase as one of cross-market integration and a more complete financial ecosystem. CMU OmniClear will roll out global securities services in phases and strengthen connectivity with markets across Europe, the Americas, the Middle East, Central Asia, and ASEAN. The government will also develop a more comprehensive derivatives system to strengthen risk management and price discovery, encourage new thematic and commodity indices, and improve margin and collateral arrangements across clearing houses to lower costs and raise efficiency.
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