China’s Ministry of Finance has successfully raised 15 billion yuan (US$2.22 billion) through a sovereign bond auction in Hong Kong, tapping international capital just days after the city launched a long-awaited tool designed to help global investors hedge against mainland bond market risks.The sale, conducted on Wednesday for institutional investors, was met with an enthusiastic market response, achieving a 4.67 bid-to-cover ratio. It marks the fourth tranche of Beijing’s 84 billion yuan sovereign bond programme for the year approved by the State Council, China’s cabinet.According to the details released following the auction, the ministry raised 5 billion yuan for the two-year tranche, 4 billion yuan for each of the three-year and five-year tranches, and 1 billion yuan each for the longer-term 15-year and 30-year bonds.The couple rates was set at 1.27 per cent for the two-year bonds, 1.3 per cent for the three-year bonds, 1.43 per cent for the five-year bonds, 1.99 per cent for the 15-year bonds and 2.24 per cent for the 30-year bonds.The strong performance validated predictions of robust investor appetite, which analysts attributed to a shortage of high-quality yuan-denominated assets and expectations of currency appreciation.The auction on Wednesday comes two days after a milestone for Hong Kong’s capital market. On Monday, the city’s bourse debuted its first offshore China government bond (CGB) futures contract. Based on five-year notes, the new financial instrument fills a crucial gap for global investment funds exposed to onshore fixed-income assets.At Monday’s listing ceremony, Financial Secretary Paul Chan Mo-po described the new futures contract, together with Swap Connect, as crucial instruments in creating “a more comprehensive risk management framework for offshore renminbi fixed-income products”.