(MENAFN) Mainland China as well as Hong Kong have chosen to start a new “Swap Connect” plan after six months, letting mutual access to interest rate swap exchange.
The move targets to promote the development of economics derivatives markets in both China and Hong Kong, in line with a bilateral announcement from the People’s Bank of China (PBoC), the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority on Monday.
The agreement, inked throughout the 25th anniversary of Hong Kong’s rejoin to the motherland, is going to enable external financiers in Hong Kong to participate in china interbank economic derivatives markets.
Southbound Trading, which is going to commence later, is going to permit mainland financers to allow the Hong Kong economic derivatives market through mutual access.
Distinctly, the PBoC also stated on Monday that it has developed the existing separate currency exchange service with Hong Kong and grew its size to 800 billion yuan (USD119.4 billion) from 500 billion yuan (USD74.65 billion).
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