Mainland China and Hong Kong financial regulators said on Monday that they will launch a programme allowing mutual access to interest rate swap trading in six months, in a move to promote the country’s financial derivatives markets.
The arrangement, which was announced on the same day as an expanded currency swap between China’s central bank and Hong Kong’s monetary authority, followed the 25th anniversary of the territory’s return from Britain and a rare visit from Chinese president Xi Jinping.
Xi briefly visited Hong Kong last week, his first trip outside the mainland since the coronavirus pandemic emerged, and pledged Beijing would support Hong Kong to “maintain its unique position and advantages”, including its status as an international financial and trading hub.