Hong Kong and China expand Northbound Swap Connect to US$6.3b

It also expanded the list of dealers and is expanding repo business activities.

Hong Kong and China are deepening mutual access to their financial markets, including more than doubling the daily quota of Northbound trading of Swap Connect to RMB45b (about US$6.3b).

They have also expanded the list of Swap Connect dealers.

Other measures include “supporting various types of offshore institutional investors to conduct repurchase or repo business in the Mainland bond market.”

The People’s Bank of China will also work with relevant authorities to provide more renminbi assets in the Hong Kong market including treasury bonds, as well as work for the launch of RMB treasury bond futures in the city, according to a report by news.gov.hk.

Financial Secretary Paul Chan said that the series of measures announced by the PBoC provide strong support for the Hong Kong SAR Government’s efforts and further promote the co-ordinated development of the fixed income markets in both places.

(US$1 = RMB7.13; as of 26 September, Morningstar via Google)