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MNI BRIEF: China/HK Swap Connect To Launch May 15 - PBOC

MNI (BEIJING)
MNI (Beijing)

Swap Connect will begin northbound trading on May 15, the People’s Bank of China (PBOC) said on Friday, in a move that will help support the development of the financial derivatives markets in mainland China and Hong Kong, demonstrating China's commitment to an ongoing financial opening up.

The PBOC said it had reached consensus with the Hong Kong Monetary Authority (HKMA) on cross-border regulatory cooperation, and the parties had signed a memorandum of understanding on matters related to their respective derivatives market. During the initial phase of operation, overseas investors daily net notional trading volumes will be capped at RMB20 billion.

Foreign investor’s intending to participate in the Swap Connect programme should contact the Foreign Exchange Trading Center and the Shanghai Clearing House.

The announcement comes after the PBOC published further Swap Connect rules last week.

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MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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