Joint press release of the PBoC, the SFC and the HKMA on further enriching the product types of Swap Connect to facilitate high-level opening-up of Mainland’s financial markets

On May 15, 2025, the People’s Bank of China (PBoC), Hong Kong Securities and Futures Commission (SFC), and Hong Kong Monetary Authority (HKMA) issued a joint press release announcing enhancements to the Swap Connect program, which facilitates mutual access to the Mainland and Hong Kong interest rate swap markets. Following its launch in May 2023, Swap Connect has seen steady transaction growth, with over 12,000 swaps executed by 20 Mainland dealers and 79 offshore investors, totaling approximately RMB 6.5 trillion by April 2025. To further develop financial derivatives markets and promote the opening of Mainland financial markets, the authorities plan to extend the tenor of interest rate swap contracts to 30 years and include those based on the Loan Prime Rate (LPR). These enhancements aim to meet diverse risk management needs and support the internationalization of the RMB while bolstering Hong Kong’s position as an international financial center. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/05/20250515-7/