[Pan Gongsheng: Support Hong Kong in Launching Offshore RMB Government Bond Futures and Building a Comprehensive Financial Trading Platform] On July 7, Pan Gongsheng, Governor of the People's Bank of China, stated at the 'Hong Kong Fixed Income and Currency Summit and Bond Connect Forum' that the next step for the People's Bank of China will be to collaborate with the Hong Kong SAR government and financial regulatory authorities to focus on four key directions to continue building, consolidating, and developing Hong Kong as an international financial center. One of the directions is to support Hong Kong in developing a diversified financial market. Pan Gongsheng noted that Hong Kong's financial market has traditionally been dominated by the stock market, while sub-markets such as bonds, gold, commodities, and derivatives have significant development potential. Currently, global interest rate and inflation fluctuations are intensifying. Pan Gongsheng stated that Chinese bonds, with their relative stability and low volatility, highlight unique advantages for diversified allocation, continuously attracting increased allocation demand from international investors. Coupled with the relatively low financing costs in RMB, Hong Kong's RMB bond market is facing a rare development opportunity. Pan Gongsheng emphasized that the People's Bank of China will, in the next step, align with market demand to continue supporting Hong Kong in building a diversified financial market system and strengthening its functions as an international asset management and wealth management center. Measures he disclosed include: supporting Hong Kong in launching offshore RMB government bond futures, with five-year RMB government bond futures to be introduced in Hong Kong soon to facilitate risk management in the offshore market; supporting Hong Kong in building a comprehensive financial trading platform, with the People's Bank of China guiding the China Foreign Exchange Trade System to collaborate with the Hong Kong Monetary Authority and the Hong Kong Securities and Futures Commission to support Bond Connect Company in upgrading to an operational entity for a trading platform, providing financial infrastructure services for trading in bonds, currencies, foreign exchange, and other financial markets; and expanding the scope of RMB bonds as eligible collateral in the offshore market, among other initiatives. (Source: Cailian Press)