The Hong Kong Securities and Futures Commission, together with the People’s Bank of China and the Hong Kong Monetary Authority, announced plans to further expand the product offering under Swap Connect, the Mainland-Hong Kong interest rate swap markets mutual access scheme. The planned enhancements extend eligible interest rate swap tenors to 30 years and add interest rate swaps referencing the Loan Prime Rate (LPR), with implementation to be rolled out progressively by relevant market infrastructure operators. Swap Connect launched on 15 May 2023 and was enhanced in May 2024 to provide more flexibility for offshore institutional investors in managing interest rate risk. As of end-April 2025, the scheme involved 20 Mainland dealers and 79 offshore investors, with more than 12,000 interest rate swap transactions completed and an aggregate notional amount of approximately RMB 6.5 trillion. Infrastructure operators in both markets will implement the enhancements in phases, while regulators on the Mainland and in Hong Kong will continue to guide further refinements based on Swap Connect’s operational performance.
Hong Kong Securities & Futures Commission 2025-05-15
Hong Kong Securities and Futures Commission joins the People’s Bank of China and Hong Kong Monetary Authority to expand Swap Connect with 30-year tenors and LPR-referenced swaps
The Hong Kong Securities and Futures Commission, in collaboration with the People’s Bank of China and the Hong Kong Monetary Authority, plans to expand Swap Connect by extending eligible interest rate swap tenors to 30 years and including swaps referencing the Loan Prime Rate. As of April 2025, Swap Connect involved 20 Mainland dealers and 79 offshore investors, with over 12,000 transactions and a notional amount of approximately RMB 6.5 trillion. Enhancements will be implemented progressively by market infrastructure operators, with ongoing regulatory guidance.