Commodities may add to Connect scheme as China signals support for Hong Kong’s role

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China’s securities regulator has given his strongest endorsement yet to expand and add financial products to a transborder investment channel with Hong Kong, in a boost to the city’s role as the mainland’s offshore financial centre.

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Commodities may be added to the stocks, bonds, options and wealth management products that are currently tradeable in the so-called Connect scheme, which allows global investors and mainland capital to tap into each other’s markets via Hong Kong, said Wu Qing, the chairman of the China Securities Regulatory Commission (CSRC). More options and futures will also be added to the pipeline, he said.

The regulator plans to “steadily widen the openings in the commodities and financial futures market” to global capital, Wu said during the Global Financial Leaders Investment Summit organised by the Hong Kong Monetary Authority (HKMA). “We want to improve the stability, transparency and predictability in our policies.”

Wu is among a coterie of mainland financial officials attending the HKMA’s flagship event in Hong Kong, led by Chinese Vice-Premier He Lifeng.

Beijing will help more mainland companies list in Hong Kong, improve mutual market access, issue treasury bonds and strengthen its position as a global offshore yuan hub, which will help the city become a stronger international financial centre and support China in opening up its economy, said He, the highest-ranking Chinese financial official to visit the city in years. He delivered a recorded speech via satellite last year.

Chinese Vice Premier He Lifeng at the Global Financial Leaders’ Investment Summit in Hong Kong on 19 November 2024. Photo: Dickson Lee

“Once again, it is proved that with a good system of ‘one country, two systems’, the sturdy support of the country and hard work of the people, Hong Kong’s status as an international financial centre will be more prominent,” he said in his opening remarks at the conference.