Optimize the arrangement of "swap" mechanism and promote the high-level opening of China's financial market to the outside world
In order to implement the strategic plan of the CPC Central Committee and the State Council on steadily promoting the opening of China's financial market to the outside world.HighstakesrouletteOn May 15, 2023, the mainland and Hong Kong interest rate swap market interconnection cooperation (hereinafter referred to as "swap") was officially launched. Since the launch of the business, mechanisms such as transaction clearing have operated smoothly, investors at home and abroad have actively participated, and the volume of business has continued to rise. By the end of April 2024, 20 domestic bidders and 58 foreign investors had reached a total of more than 3600 RMB interest rate swap transactions, with a total nominal principal of about 1.HighstakesrouletteThe nominal principal of daily transactions is about 7.6 billion yuan, and the nominal principal of monthly transactions has increased nearly three times, from about 3 billion yuan in the first month of launch to more than 12 billion yuan in April 2024. It provides a convenient and efficient risk management tool for domestic and foreign investors to carry out RMB asset allocation.
In order to further promote the coordinated development of the financial derivatives markets in the mainland and Hong Kong and build a high-level financial opening pattern, the people's Bank of China, the Hong Kong Securities and Futures Commission, and the Hong Kong Monetary Authority, on the basis of fully summing up the operation experience of the "swap" and carefully listening to the opinions and suggestions of investors at home and abroad, support the further optimization of the "swap" mechanism. The first is to enrich product types and launch interest rate swap contracts with the international money market settlement date as the payment cycle, which is in line with the mainstream international transactions to meet the diversified risk management needs of investors at home and abroad. The second is to improve supporting functions, launch contract compression services and supporting historical interest-bearing contracts, facilitate participating institutions to manage the business scale of duration contracts, reduce capital occupation, and activate market transactions. In addition, the National Interbank loan Center, Interbank Market Clearing House Co., Ltd., and Hong Kong over-the-counter Clearing Co., Ltd. will also launch theirHighstakesrouletteHis systematic optimization and preferential measures to reduce the cost of business participation of investors at home and abroad.
In the next step, the regulatory authorities of the mainland and Hong Kong will guide the infrastructure institutions of the financial markets of the two places, continue to promote "swap" business cooperation in a safe and orderly manner, and continuously improve various mechanisms and arrangements, so as to steadily expand the opening up of China's financial market to the outside world. Consolidate and enhance Hong Kong's status as an international financial center.
