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Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the joint announcement today (Thursday) from the Securities and Futures Commission (SFC), the Hong Kong Monetary Authority (HKMA) and the People's Bank of China to further enhance Swap Connect, enabling international investors to better manage the interest rates risk of their RMB assets.
Following the announcement, OTC Clear, HKEX’s clearing subsidiary, will collaborate with China Foreign Exchange Trade System (CFETS) and Shanghai Clearing House (SHCH) to enrich the product features under Northbound Swap Connect, by extending the maximum tenor of interest rates swap contracts to 30 years, and adding 1-year Loan Prime Rate (LPR 1Y) into the floating reference rate options. More details about these enhancements will be announced in due course.
Swap Connect, a mutual access programme linking Hong Kong and Mainland China’s interbank interest rate swap markets, has recorded steady growth in trading volumes since its launch on 15 May 2023. It has become the major channel for international investors to manage the interest rate risk of their RMB assets.
As of the end of April 2025, a total of 79 international institutions from 15 markets have conducted more than 12,000 interest rate swap transactions under Swap Connect, with an aggregate notional amount of about RMB6.5 trillion.
HKEX looks forward to working closely with CFETS, SHCH, regulators and market participants to further enhance and develop the Swap Connect programme, facilitating the continued opening of China's financial markets and the internationalisation of the RMB.
