HKEX’s OTC Clear accepts China government bonds as collateral to strengthen RMBHong Kong Exchanges and Clearing Limited (HKEX) has announced that OTC Clear, its clearing subsidiary, will now accept China Government Bonds (CGB) and Policy Bank Bonds as collateral for all derivative transactions. OTC Clear accepts CGBs as margin collateral for Northbound Swap Connect transactionsOTC Clear has started accepting these instruments as margin collateral for Northbound Swap Connect transactions. The use of CGB and Policy Bank Bonds as collateral broadens the range of acceptable securities for derivatives transactions. This development aligns with HKEX’s goal of fostering growth and efficiency in the global derivatives market. OTC Clear aims to support international investors by providing increased flexibility and liquidity when managing collateral for derivatives trading.