Swap Connect commences today
The Securities and Futures Commission (SFC) welcomes the launch of Swap Connect, the latest mutual access programme between Hong Kong and the Mainland. Swap Connect commenced trading today starting with Northbound Trading which allows investors from Hong Kong and other jurisdictions to participate in the Mainland interbank interest rate swap market (Note 1).
“Swap Connect marks the first mutual market access programme for financial derivatives products that allows global investors holding Mainland bonds to manage renminbi interest rate risks,” said Ms Julia Leung, the SFC’s Chief Executive Officer. “It deepens connectivity between Mainland and overseas capital markets and bolsters Hong Kong’s position as a risk management hub.”
Mainland bond holdings by international investors amounted to RMB 3.2 trillion, up by about 300% from that of 2017 when the Bond Connect scheme was first launched.
Note:
- The Securities and Futures Commission, the People’s Bank of China and the Hong Kong Monetary Authority issued a joint announcement on Swap Connect on 4 July 2022 and a joint press release on 5 May 2023.
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