Swap Connect is the latest mechanism designed to augment Hong Kong’s role as an international financial hub, and to further open up the Chinese interbank derivative market. It will kick off with interest rate swaps. Photo: AFP
China, Hong Kong regulators to launch Swap Connect, give offshore holders of US$553 billion in onshore yuan bonds more tools to hedge risks
- Initially, only Hong Kong and overseas investors will be allowed to access China’s interbank derivative market through northbound trade
- Swap Connect will bolster international investors’ participation in China’s onshore bond market, HKMA CEO says
