OTC Clear to Accept China Government Bonds and Policy Bank Bonds as Collateral for Swap Connect from 13 January 2025

Hong Kong Exchanges and Clearing Limited (HKEX) announced that starting 13 January 2025, offshore investors can use China Government Bonds and Policy Bank Bonds held through Bond Connect as collateral for Northbound Swap Connect. This will provide greater flexibility for international investors, improve capital efficiency, and promote the internationalisation of the RMB. Swap Connect, linking Hong Kong and Mainland China’s interbank interest rate swap markets, has seen strong growth since its May 2023 launch, with 71 overseas institutions participating and an increase in daily turnover to RMB 18.2 billion in November 2024.

Resources: https://www.hkex.com.hk/News/News-Release/2024/241216news?sc_lang=en