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China and Hong Kong announce new swap connect measures

It will expand product choices under Swap Connect, improve efficiency, and reduce participation costs.

The People's Bank of China, the Securities and Futures Commission, and the Hong Kong Monetary Authority have announced new measures to enhance the Swap Connect, which links the Mainland and Hong Kong interest rate swap markets.

The Hong Kong Special Administrative Region (SAR) government said that the enhancements will broaden the range of products available under Swap Connect, improve the efficiency of the mechanism, and reduce participation costs. 

These changes are expected to better address the diverse risk management needs of both domestic and foreign investors and promote trading activities.

The SAR government assured that it will work closely with Mainland institutions to implement these changes quickly.

The announcement follows the China Securities Regulatory Commission's recent introduction of measures to expand mutual access between the Mainland and Hong Kong capital markets and support the listing of leading Mainland enterprises in Hong Kong.
 

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