In a recent press release, Hong Kong Exchangs and Clearing Limited (HKEX) said she welcomed new measures to enhance swap connection, which aims to enhance international access to the interest rate exchange market in China.
The Securities and Futures Committee (SFC), a Hong Kong cash body (HKMA), and the Hong Kong (HKMA) and People’s Bank in China last week on Thursday, will allow the interest rate risks associated with their housing in Renminbi (RMB).
HKEX said that its Clearing company, OTC Clear, will work with the foreign exchange trade system in China (CFETS) and Sharaghai (SHCH) to implement the updates.
Scheduled changes include expanding the maximum exchange contracts to 30 years and adding a year -long loan prime rate (LPR 1Y) as a floating reference rate option.
Swap Connect was launched in May 2023, and it can access the exchange of exchanges between banks in Hong Kong and the main mainland of China.
From its inception, it is said that it has seen steadfast growth and has become the main channel of international investors to undergo interest rates RMB.
By the end of April 2025, 79 international institutions from 15 markets completed more than 12,000 transactions under the program, with a total default volume of about 6.5 trillion yuan.
“HKEX is looking to work closely with CFTS and SHCH, organizers and market participants to increase the strengthening and development of the Connect Connect, which facilitates the constant openness of the financial markets in China and the internationalization of RMB, “said HKEX.