Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Monday) the launch of interest rate swap contracts with a maximum tenor of 30 years to trade on Northbound Swap Connect. This latest enhancement to Swap Connect follows close collaboration between HKEX’s clearing subsidiary, OTC Clearing Hong Kong Limited (OTC Clear) with China Foreign Exchange Trade System (CFETS) and Shanghai Clearing House (SHCH).
A total of 25 institutions conducted 56 transactions of RMB interest rate swaps with an extended tenor via Northbound Swap Connect on Monday, with an aggregate notional amount of about RMB1.53 trillion, marking the first day of trading for the extended-tenor contracts. Previously, the longest tenor of interest rate swaps under Swap Connect was 10 years.
This Swap Connect enhancement will extend the connectivity between Mainland China and Hong Kong’s interest rate derivatives markets, and further support the diversified risk-management needs of both Chinese and international institutions, including insurance companies and pension funds, by matching the swaps tenor with the duration of their long-term bond holdings. The extension will also enable international investors to adopt more sophisticated trading strategies in their cross-border investment, enhancing the overall efficiency of asset allocation in RMB.
Swap Connect, a mutual access programme linking Hong Kong and Mainland China’s interbank interest rate swap markets, has recorded steady growth in trading volumes since its launch in May 2023. It has become the major channel for international investors to manage interest rates risk of their RMB assets.
As of the end of June 2025, a total of 82 international institutions have participated in Swap Connect, with an aggregate notional amount of about RMB7.16 trillion.
HKEX looks forward to continuing working closely with CFETS, SHCH, regulators and market participants to further enhance and develop the Swap Connect programme, facilitating the continued opening of China’s financial markets and the internationalisation of the RMB.
