China's capital market has marked another milestone in its opening-up, with an overseas institution completing the first transaction in the country's onshore treasury bond futures market.

Standard Chartered Bank (China) Ltd announced on May 28 that it had assisted a qualified foreign investor in completing a treasury bond futures trade on the China Financial Futures Exchange, marking the first participation by an overseas institution in the country's onshore treasury bond futures market.

The move follows a China Securities Regulatory Commission announcement allowing qualified foreign investors to participate in treasury bond futures trading for hedging purposes from April 24, 2026.

Jean Lu, CEO and executive vice-chairperson of Standard Chartered Bank (China) Ltd, said the internationalization of the renminbi is evolving beyond its traditional role as a trade settlement currency toward a more mature financial ecosystem, in which renminbi assets can be invested in, financed and effectively hedged.

Lu added that overseas investors' holdings of renminbi-denominated assets, as well as their appetite for such assets, continue to grow, while the range of available hedging tools remains relatively limited.

Source: China Securities Journal