- New programme to facilitate mutual access between the Hong Kong and mainland China interest rate swap markets.
- The new arrangement, a so-called swap connect,
- Initially allow offshore investors in Hong Kong to access the mainland interbank financial derivatives market.
Three days after the country commemorated the 25th anniversary of Hong Kong’s return to China, financial officials said on Monday that they will establish a new programme to facilitate mutual access between the Hong Kong and mainland China interest rate swap markets.
According to a statement from the People’s Bank of China, the new arrangement, a so-called swap connect, will initially allow offshore investors in Hong Kong to access the mainland interbank financial derivatives market, and will “in due course” explore how to allow mainland investors to access Hong Kong’s derivatives market.
In six months, the first phase of the programme will be implemented.
According to the PBoC, mainland investors engaged in interbank financial derivatives transactions of Rmb21,100 billion in 2021.
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