HKEX(HK:00388) Zheng Quan Ri Bao Wang·2025-09-22 11:17Core Viewpoint - The introduction of interest rate swap contracts based on the one-year Loan Prime Rate (LPR1Y) under the "Northbound Swap Connect" aims to enhance risk management tools for overseas investors and meet their diverse interest rate risk management needs [1][2]. Group 1: Market Development - Since its launch on May 15, 2023, the "Swap Connect" has been operating smoothly, becoming an important channel for overseas institutional investors to manage RMB interest rate risk [2]. - As of the end of August 2025, 82 overseas financial institutions from 15 countries and regions have conducted over 15,000 RMB interest rate swap transactions, totaling a nominal principal of approximately 8.15 trillion RMB [2]. Group 2: Infrastructure and Operations - The collaboration between the China Foreign Exchange Trading Center, Shanghai Clearing House, and Hong Kong's OTC Clearing Limited has facilitated the seamless execution and clearing of transactions under the "Northbound Swap Connect" [1][2]. - The dual Central Counterparty (CCP) interconnection and single resource pool arrangement have reduced participation complexity for domestic and foreign investors while effectively managing systemic risks [2]. Group 3: Future Outlook - The three-party infrastructure will continue to work closely with market participants under the guidance of regulatory authorities to enrich "Swap Connect" products and enhance the risk management framework [3].