Mainland China and Hong Kong Announce Interest Rate Swap Market Collaboration

The China Foreign Exchange Trade System, the Shanghai Clearing House and OTC Clearing Hong Kong are to collaborate in a bid to deliver mutual access between the Hong Kong and mainland interest rate swap markets (Swap Connect). The move, seen as key to the further development of the financial derivatives markets in both mainland China and Hong Kong, was jointly announced by the People’s Bank of China (PBOC), the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority on 4 July.

It is envisaged that Swap Connect will go live in six months.