Official Launch of Northbound Trading of Swap Connect

Northbound Trading of Swap Connect is officially launched today (15 May).

Northbound Trading of Swap Connect provides a convenient and secure channel for international investors to trade interest rate swap products in the Mainland via a connection between infrastructure institutions in Hong Kong and the Mainland. The scheme aims to facilitate global investors’ management of interest rate risks arising from their allocation to Mainland bonds.

Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), said, “The launch of Northbound Trading of Swap Connect is another new milestone in the financial cooperation between Hong Kong and the Mainland.  It will create favourable conditions for global investors to increase their participation in the onshore bond market, and carries special significance for enhancing the recognition of and confidence in RMB bonds in the international market.  Northbound Trading of Swap Connect will also provide new opportunities for Hong Kong’s financial institutions and strengthen Hong Kong’s role as a global risk management centre and offshore RMB hub.”

The HKMA will closely monitor the implementation of the Northbound Trading of Swap Connect together with relevant Hong Kong and Mainland regulators, and enhance operational arrangements in accordance with market development and investor needs.  We will continue to explore with Mainland authorities the provision of more diversified risk management tools to international investors.

Hong Kong Monetary Authority
15 May 2023