Daily Management Review

China to allow foreign investors to enter futures market for Chinese government bonds


04/27/2026


The China Securities Regulatory Commission (CSRC) has announced that qualified foreign investors will be permitted to trade futures on Chinese government bonds as a means to hedge risks, according to a report by Bloomberg, which cites a statement from the regulator.



puiblic domain pictures
puiblic domain pictures
The measure is intended to develop tools for managing interest rate risks for foreign institutional investors and to enhance the appeal of yuan-denominated bonds.

By the end of March, foreign investors had held Chinese government bonds worth a minimum of 1.95 trillion yuan, which is approximately $285 billion, since December 2020.

Futures contracts for government bonds with maturities of two, five, ten, and thirty years are traded in China.  In 2025, the turnover of this market reached 96.96 trillion yuan, which is higher than the 67.37 trillion yuan recorded in the previous year and significantly above the 6.01 trillion yuan seen in 2015.

In 2023, for the first time, the Chinese authorities permitted a division of a foreign bank, represented by Standard Chartered China, to enter this market.

source: bloomberg.com