China Gets Missing Piece of Bond Market With New Futures

China is offering a new hedging tool for investors of longer-dated bonds, the first in a line up of measures expected this year to enhance the appeal of the world’s second-largest debt market.

Futures on 30-year government notes are set to start trading Friday on the onshore China Financial Futures Exchange, adding an ultra-long option to existing contracts on 2-, 5- and 10-year debt. Trading of the contract was approved by the regulator last week, almost five years after officials started studying the tool.

The move comes as China looks to increase market liquidity and add options for ...