HK, Mainland enhance Swap Connect scheme

The People's Bank of China, the Securities & Futures Commission and the Hong Kong Monetary Authority on Monday issued a joint announcement on a series of measures to enhance the mutual access arrangements between the Mainland and Hong Kong interest rate swap markets (Swap Connect).

The Hong Kong Special Administrative Region Government welcomed the decision and thanked the Central People's Government and relevant authorities for their strong support.

It also noted that the newly announced measures further foster the collaborative development of the derivatives markets in the two places.

The Hong Kong SAR Government went on to explain that the measures will expand the choice of products under Swap Connect, enhance the efficiency of the mechanism and reduce participation costs, thereby further addressing the diverse risk management needs of domestic and foreign investors as well as promoting trading.

It will also work closely with the relevant Mainland institutions and seek to implement the arrangements at full speed.

The measures announced today are the second batch of enhancements publicized within a month following the China Securities Regulatory Commission's announcement last month of the five measures to support the expansion of mutual access between the capital markets of the two places and the listing of leading Mainland enterprises in Hong Kong.

The Hong Kong SAR Government said it strives to deepen and expand mutual access between the Mainland and Hong Kong financial markets, complementing the country's economic development strategy.

It added that the Central People's Government attaches importance to Hong Kong's financial market and actively promotes the concerted development of the financial markets of both places, providing solid policy protection and broad scope for Hong Kong to take forward the relevant work.