The People’s Bank of China, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority published a joint update setting out planned enhancements to Swap Connect, the mutual market access scheme linking the Mainland and Hong Kong interest rate swap markets. The planned changes would broaden the range of eligible products to better meet market participants’ risk management needs. Enhancements under consideration include extending the tenor of eligible interest rate swap contracts to 30 years and expanding product scope to include interest rate swaps that use the Loan Prime Rate as the reference rate. As of end-April 2025, 20 Mainland dealers and 79 offshore investors had participated in Swap Connect, completing more than 12,000 interest rate swap transactions with an aggregate notional amount of approximately RMB 6.5 trillion. Relevant financial infrastructure operators in both markets will roll out the enhancement measures progressively, with regulators continuing to guide further refinements based on operational experience and investor feedback.
Hong Kong Monetary Authority 2025-05-15
People’s Bank of China, Hong Kong Securities and Futures Commission and Hong Kong Monetary Authority plan to expand Swap Connect with 30-year tenors and LPR-referenced swaps
The People’s Bank of China, the Hong Kong Securities and Futures Commission, and the Hong Kong Monetary Authority announced planned enhancements to Swap Connect, expanding eligible products and extending interest rate swap contract tenors to 30 years. As of April 2025, Swap Connect facilitated over 12,000 transactions with a notional amount of RMB 6.5 trillion. Enhancements will be implemented progressively, with ongoing regulatory guidance.