“北向互换通”扩容 新增LPR利率互换

Core Insights - 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 [1][2] - The first day of trading saw participation from 31 domestic and foreign institutions, with a total of 53 transactions and a nominal principal amount of 6.46 billion yuan [1] - Since its launch on May 15, 2023, the "Swap Connect" has facilitated over 15,000 transactions with a cumulative nominal principal of approximately 8.15 trillion yuan from 82 foreign financial institutions across 15 countries and regions [2] Group 1 - The "Northbound Swap Connect" was launched to provide overseas investors with diversified interest rate risk management tools [1] - The successful execution of the first day of trading and settlement indicates a smooth operation of the new business and system [1] - The "Swap Connect" has become a vital channel for foreign institutional investors to manage RMB interest rate risk [2] Group 2 - The initiative retains the regulatory rules, market structure, and trading habits of both regions, ensuring a seamless integration for international investors [2] - The platform has significantly increased trading activity, reflecting its growing importance in the financial derivatives market [2] - The introduction of LPR-based swaps is expected to further enrich the risk management options available to overseas investors [1]