FINANCE

China Opens Government Bond Futures to Foreign Investors for Hedging

Published: Apr. 24, 2026 11:24 p.m. GMT+8

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China’s government bond futures market was launched in 1992 but was suspended for nearly two decades following a major trading scandal in 1995

China has allowed qualified foreign institutional investors to trade domestic government bond futures strictly for hedging purposes, a move aimed at strengthening the appeal and stability of yuan-denominated assets.

The policy, effective April 24, gives global funds new tools to manage interest rate risk in their Chinese debt portfolios. Regulators said the move is part of a broader push toward high-level institutional opening-up of China’s financial markets.

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China allows QFII/RQFII investors to trade domestic government bond futures for hedging only, effective April 24.
Foreign holdings: 3.2 trillion yuan interbank bonds (end March 2026), 1.95 trillion yuan gov bonds (61.1%).
March 2026 futures volume: 7.1 trillion yuan (down 13.4% YoY); open interest up 28.2% to 758,000 lots.

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Who’s Who

Huayuan Securities: Liao Zhiming, chief fixed-income analyst at Huayuan Securities, said allowing foreign access to government bond futures will broaden the investor base and improve market liquidity and capacity.

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