Press release announces enhancements to Swap Connect, a mutual access scheme for interest rate swaps, to promote high-level financial market opening in mainland China. Key changes include extending swap contract tenors to 30 years and adding Loan Prime Rate ("LPR") swaps. The move is part of ongoing efforts to integrate Hong Kong’s financial markets with those of mainland China.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SFC Regulation of Virtual Asset Trading Platforms: The Emerging Hong Kong Framework
SFC proposes new regulation of virtual assets through licensing of operators of cryptocurrency and other digital asset trading platforms
Market Misconduct Tribunal: A Guide to Penalties and Other Consequences for Misuse of Insider Information
Market Misconduct Tribunal proceedings for mishandling of insider information can result in fines and disgorgement orders
SPOTLIGHT ON
FAMILY OFFICES
The enhancements to the Swap Connect scheme, announced by the People’s Bank of China ("PBoC"), Hong Kong Securities and Futures Commission ("SFC"), and Hong Kong Monetary Authority ("HKMA"), aim to further integrate and open mainland China's financial markets to offshore investors, fostering a more interconnected global financial system.
Since its inception on 15 May 2023, Swap Connect has experienced a notable increase in transaction volumes. As of April 2025, it has facilitated 12,000 interest rate swap transactions with an aggregate notional amount of approximately RMB 6.5 trillion, involving 20 mainland dealers and 79 offshore investors.
The improvements to Swap Connect encompass extending the tenor of interest rate swap contracts up to 30 years and expanding the product scope to include interest rate swaps using the Loan Prime Rate ("LPR") as the reference rate. These changes cater to the diverse risk management needs of market institutions and enhance the appeal of RMB assets to international investors.
The implementation of these enhancements will occur progressively, with both mainland China and Hong Kong's financial infrastructure operators rolling out the changes incrementally. Regulatory authorities will oversee these efforts, drawing on the operational experience of Swap Connect, to steadily advance the opening of mainland China's financial markets, promote the internationalisation of the RMB, and bolster Hong Kong's status as an international financial hub.
View the full article:Source
