HKEX announces Swap Connect enhancements 23 May 2025Hong Kong Reporter: Daniel Tison
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The Securities and Futures Commission (SFC), the Hong Kong Monetary Authority (HKMA), and the People's Bank of China (PBoC) have partnered to enhance Swap Connect, enabling international investors to better manage the interest rate risk of their renminbi assets.
Following the announcement, OTC Clear, the clearing subsidiary of Hong Kong Exchanges and Clearing (HKEX), will collaborate with China Foreign Exchange Trade System (CFETS) and Shanghai Clearing House (SHCH) to enrich the product features under Northbound Swap Connect.
The company says: “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.”
Swap Connect, a mutual access programme linking Hong Kong and China’s interbank interest rate swap markets, has recorded steady growth in trading volumes since its launch in May 2023, according to HKEX.
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 RMB 6.5 trillion.
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