SWAP CONNECT - China Hong Kong Financial Integration
July 11, 2022
The Hong Kong Special Administrative Region Government published a press release last July 4th, welcoming the introduction of Swap Connect, which will enable mutual access arrangements between the interest rate swap markets of the Mainland and Hong Kong.
According to a joint announcement by the People’s Bank of China, the Securities & Futures Commission and the Monetary Authority, Swap Connect will be officially launched in six months, following the completion of preparatory work including finalizing the relevant rules and system development, and obtaining regulatory approvals.
Swap Connect refers to an arrangement that enables investors to participate in the financial derivatives markets in the Mainland and Hong Kong through a connection between infrastructure institutions in both places.
It will start with northbound trading in the initial phase, allowing Hong Kong and overseas investors to participate in the Mainland’s interbank derivatives market through arrangements in trading, clearing, settlement etc. between specified institutions in Hong Kong and the Mainland.
Southbound trading will be explored in due course, aiming to allow Mainland investors to participate in Hong Kong’s derivatives market through mutual access arrangements between specified institutions of the two places.
Consolidate Hong Kong’s status as an international financial centre and a business hub
Chief Executive John Lee said Swap Connect marks another milestone in the integration of the Mainland and Hong Kong financial markets through introducing mutual access in the realm of financial derivatives products, enhancing the comprehensiveness of the product suit trading under the mutual market access schemes.
“I am most grateful to the Central People’s Government for announcing the initiative at the beginning of the new-term Government, which will bolster investors’ confidence in our country’s steadfast support to the development of Hong Kong as an international financial centre.
The implementation of the initiative will further support Hong Kong in strengthening its functions as a global offshore renminbi business hub and a risk management centre in response to the targets laid down in the National 14th Five-Year Plan, while contributing to the high-quality opening up of the Mainland capital market.”
Financial Secretary Paul Chan said: “Swap Connect will help drive forward the development of derivatives markets in the Mainland and Hong Kong, offering more diverse risk management tool options to investors and enhancing the ecosystem for derivatives products of the two places.
It will also be conducive to the development of Hong Kong’s offshore RMB market, thereby further consolidating Hong Kong’s status as an international financial centre and a global offshore renminbi business hub.”
Monetary Authority Chief Executive Eddie Yue noted: “Swap Connect will create synergy with Bond Connect to facilitate global investors’ management of interest rate risks for their bond investment on the Mainland. The scheme will add to the depth and breadth of the opening-up of the Mainland financial markets. It will also create more opportunities for financial institutions in Hong Kong and strengthen Hong Kong’s status as a risk management centre.”
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Please contact Maja Kovačević Coupé
/ Business Development & Account Manager / Altios Hong Kong & Greater China
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ALTIOS: 30 years old, an international success story
ALTIOS is the story of a passion for international business and the meeting of 5 personalities.
Founded in Sydney in 1991 by Bruno Mascart, Altios’ mission was initially to support European companies looking to set up in Australia. Over the years, Bruno was joined by David Gerard, Patrick Ferron, Boris Lechevalier and finally Klaus Maier, each one contributing to the Corporate DNA.
ALTIOS’ services have evolved considerably over the last few years to go beyond traditional marketing and sales assistance services. Today, the group offers real expertise integrating all the internationalization solutions enabling companies to expand at each stage of their growth on a market.
As a leading international advisory firm for Small and Mid-Cap companies expanding in the G30, Altios records:
/ + 10,500 carried out projects
/ + 2,000 managed employees
/ + 1,700 created subsidiaries
/ + 750 employees
/ 22 locations spread over the largest markets
/ 4 solutions adapted to each stage of #internationalization: Strategy, Development, Implementation & Investment
Read more about Altios’ story by downloading our press release!
Despite the current situation Altios Hong Kong was present during the group annual seminar and B2B meetings in France in early September. This event took place in Paris & Lyon following all sanitary restrictions and allowed more than a hundred prospects companies to discuss and share their expansion projects with Altios experts in the whole world, including Hong Kong and the Greater Bay Area.
Mainland China & the GBA Track
Invest Hong Kong (InvestHK) announced that its fifth annual Hong Kong Fintech Week will take place from November 2 to 6 at AsiaWorld-Expo in Hong Kong and in Shenzhen. InvestHK also outlined some of its activities and programmes planned for the months leading up to the region’s only cross-boundary fintech trade show.
Hong Kong Fintech Week 2020 will return to AsiaWorld-Expo, a venue that it moved to in 2019, in order to accommodate an ever-growing number of participants and greater variety in the programme. This year’s event will build on that growth and again run its signature cross-boundary Shenzhen day, part of a broader focus on the Guangdong-Hong Kong-Macao Greater Bay Area, while also picking up on some of the key themes addressed in 2019 and the coming year.
To register, just click https://www.fintechweek.hk/tickets