15 May 2023
CICC Completes First-Day Transactions of "Swap Connect"

On May 15th, the "Swap Connect" program is officially launched. As one of the first quoting dealers for "Northbound Swap Connect," CICC successfully completed multiple RMB interest rate swap transactions with overseas investors, successfully introducing several overseas investors to China’s interbank interest rate swap market, which is a new step forward in serving the internationalization of China’s capital market.

The launch of "Northbound Swap Connect" further deepens the interconnection between the Hong Kong SAR and onshore bond markets, marking a new chapter for China to open its bond market to the world. It is also another important milestone in the construction of the infrastructure for the interconnection of China's capital markets.

As one of the first quoting dealers and one of the most active participants in onshore interest rate derivatives market, CICC, with its international presence and extensive experience, actively provided suggestions for optimizing the trading mechanism after the proposal of the "Swap Connect" program. It has continuously served various overseas investors, including central banks, sovereign wealth funds, overseas banks, and asset managers, meeting their trading needs in the "Northbound Swap Connect." Multiple transactions were successfully executed on the first day of its launch, facilitating the smooth operation of the "Swap Connect."

Boosting the opening-up of China’s bond market serves as the prerequisite for building an open and market-oriented financial market system. With the launch of Swap Connect, an interconnected infrastructure network between the spot and derivative markets of Chinese Mainland and Hong Kong SAR has preliminary taken shape, laying a solid foundation for the further opening-up. Going forward, CICC will firmly fulfill its responsibilities as a quoting dealer, continuously explore the needs of global investors in RMB investment allocation and risk management, support the steady development of the "Swap Connect" mechanism, and contribute to the RMB internationalization and high-level opening-up of China’s financial market!