HKMA flags bond growth, CMU adds 24-hour settlement
SingTao · 1 SOURCESabout 2 hours ago5 MIN
Summary
Hong Kong Monetary Authority Chief Executive Eddie Yue Wai-man (余偉文) said at the 2026 Treasury Markets Summit on September 23 that Hong Kong’s bond market has expanded at a 20% compound annual growth rate over the past two decades, with about 25% of Asia’s international bond issuance last year arranged in the city. He said much of that growth had been driven by dim sum bonds, while issuance of “wonton bonds” by global institutions rose 64% year on year in the first half of this year. Yue also said the Central Moneymarkets Unit, or CMU, will roll out a new service by the end of this year to provide 24-hour, real-time on-chain settlement. The new setup will support the e-HKD and central bank digital currencies, while the HKMA is also studying whether tokenised deposits and regulated stablecoins can be accepted for settlement on the platform
Key Points
- Speaking at the 2026 Treasury Markets Summit on September 23, Eddie Yue said Hong Kong’s bond market recorded 20% annual compound growth over 20 years
- About 25% of Asia’s international bond issuance last year was conducted in Hong Kong, with strong expansion mainly attributed to dim sum bonds
- In the first half of this year, global institutional issuance of “wonton bonds” increased 64% from a year earlier, according to Yue
- The CMU system will introduce 24-hour, instant on-chain settlement by year-end, supporting e-HKD, CBDCs, and potentially tokenised deposits and regulated stablecoins
- The HKMA will test tokenisation of Exchange Fund Bills, while also exploring a seven-day offshore renminbi liquidity tender and short-term offshore renminbi debt tools
Why It Matters
The planned CMU upgrade points to a more digital bond-market infrastructure in Hong Kong, with faster settlement and broader use of tokenised money potentially improving market efficiency for banks and issuers. At the same time, the HKMA’s push to expand offshore renminbi liquidity tools and lengthen government bond tenors is aimed at deepening Hong Kong’s role as both an international funding hub and an offshore renminbi centre