LCH Limited, an LSEG business and leading global clearing house, has begun accepting offshore Renminbi-denominated Chinese Government Bonds (CGBs) as eligible non-cash collateral.
Driven by market demand globally, the addition of offshore Renminbi-denominated CGBs further broadens LCH’s eligible collateral framework as clearing members look for greater flexibility and optionality in how margin requirements are met.
The acceptance of offshore Renminbi-denominated CGBs supports more efficient use of balance sheets and liquidity by enabling firms to post high-quality local currency assets, while continuing to benefit from LCH’s global risk management standards. Further, this enhancement reflects LCH’s ongoing focus on supporting regional market participation and facilitating access to central clearing for institutions operating across multiple jurisdictions.
Under the new framework, offshore Renminbi-denominated CGBs are accepted on a bilateral basis, with settlement through Euroclear Bank. This follows an announcement from LCH in May 2025 that it had begun accepting CGBs denominated in EUR and USD.
Susi de Verdelon, CEO, LCH Limited, said:
"Expanding our collateral eligibility framework to include offshore Renminbi-denominated Chinese Government Bonds is an important step in the evolution of our offering for global members and their customers. We look forward to continuing to evolve our capabilities to support them as their participation in central clearing grows.”
Mr Funing Song, General Manager of Financial Markets, Bank of China, said:
“Bank of China Group welcomes the inclusion of offshore Renminbi-denominated Chinese Government Bonds as eligible collateral. China's bond market has grown rapidly, with increased depth, enhanced liquidity and strong international recognition. This provides a solid foundation for the further global deployment of Renminbi-denominated assets, offering diversity and relatively stable options that support effective risk management, enable sustainable long-term returns, and contribute to global financial stability.”
Patrick Wu, Head of Macro and Co-Head of Trading for Asia-Pacific and the Middle East, Crédit Agricole CIB, said:
“We welcome and support LCH’s new market-driven framework to accept offshore Renminbi-denominated CGB as eligible collateral. This milestone deepens the integration of Chinese assets into the international financial infrastructure and reflects the Bank's commitment to supporting the internationalisation of Renminbi. The initiative also represents an important evolution in how APAC markets connect with global risk management and post-trade infrastructure.”
Jacky Tai, Deputy Head of Global Financial Markets, DBS, said:
"This initiative is an industry milestone that marks a step forward in strengthening offshore Renminbi market infrastructure. It enables DBS greater flexibility to manage liquidity and optimise collateral more effectively by deploying high-quality RMB assets across our balance sheet. As we continue to expand our RMB capabilities, this reinforces our ability to offer clients more seamless and integrated solutions across funding, hedging and cross border transactions.”
Cheuk Wong, Head of Macro Trading, Asia, and Head of Markets and Securities Services, Hong Kong, HSBC, said:
“We’re proud to be among the first clearing brokers to support offshore Renminbi-denominated Chinese Government Bonds as collateral at LCH. This is an important step in strengthening the cleared derivatives market and supporting the continued internationalisation of Renminbi markets. As investor appetite for Renminbi fixed income grows, market participants are looking for ways to mobilise high-quality Renminbi assets efficiently. Through HSBC Real Clear, we’ll continue to expand our suite of collateral and liquidity solutions, helping clients make the most of their assets as markets evolve.”
Mr. Xu Lei, Deputy Chief Executive, ICBC (Asia) said:
“The collaboration between ICBC (Asia) and LCH facilitates direct connectivity between offshore RMB Chinese Government Bonds and the international central clearing system. By incorporating CGBs into LCH's collateral framework, the clearing costs for derivatives market participants are significantly reduced, and capital efficiency and asset liquidity are greatly enhanced. It also advances the process of RMB internationalisation, while supporting Hong Kong's role as an international financial hub and the next phase of growth in Asia-Pacific financial markets.”
Ed Donald, Global Head of Repo, Standard Chartered Bank, said:
"Standard Chartered is committed to supporting the development of efficient and resilient financial markets. The acceptance of CNH-denominated China Government Bonds as eligible collateral is an important step in the continued evolution of offshore Renminbi markets. By broadening the pool of high-quality assets available to meet margin requirements, this development enhances collateral efficiency, supports market liquidity, reinforces the role of central clearing, and further advances the internationalisation of the Renminbi."
View the Chinese version of the press release here
Contacts
LSEG Press Office
Harriet Leatherbarrow / Nandeep Roopray
+44 (0)20 7797 1222
About LCH
LCH builds strong relationships with credit, digital asset derivatives, equity, fixed income, foreign exchange (FX) and rates market participants to help drive innovative performance and deliver best-in-class risk management.
As a clearing member or client, partnering with us helps you increase capital and operational efficiency, while navigating an expanding and complex set of cross-border regulations, thanks to our experience and expertise.
In partnership with our stakeholders, we have helped the market transition to central clearing and continue to introduce innovative enhancements. Choose from a variety of solutions such as compression; sponsored clearing; credit index options clearing; contracts for differences clearing; and digital asset derivatives clearing. Our focus on innovation and our uncompromising commitment to service delivery makes LCH, an LSEG business, the natural choice of some of the world’s leading market participants globally.
About LSEG
LSEG is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.
With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes.
LSEG is headquartered in the United Kingdom, with significant operations in 65 countries across EMEA, North America, Latin America and Asia Pacific. We employ over 26,000 people globally, more than half located in Asia Pacific.
LSEG’s ticker symbol is LSEG.
