“北向互换通”，上新！

Core Viewpoint - The expansion of the "Northbound Swap Connect" aims to enhance risk management tools for overseas investors and promote the internationalization of the Renminbi [1][2]. Group 1: Expansion of Northbound Swap Connect - On September 22, the Hong Kong Stock Exchange, in collaboration with the China Foreign Exchange Trade System and the Shanghai Clearing House, introduced interest rate swap contracts based on the one-year Loan Prime Rate (LPR1Y) under the "Northbound Swap Connect" [1]. - On the launch day, 31 domestic and foreign institutions participated, with a total of 53 transactions and a nominal principal amount of 6.46 billion RMB [1]. Group 2: Market Activity and Future Developments - Since its launch on May 15, 2023, the "Swap Connect" has been operating smoothly, with increasing trading activity, becoming a key channel for overseas institutions to manage Renminbi interest rate risks [2]. - As of August 2025, 82 foreign financial institutions from 15 countries and regions have completed over 15,000 Renminbi interest rate swap transactions, totaling approximately 8.15 trillion RMB in nominal principal [2]. - Starting September 22, the maximum term for existing Renminbi non-deliverable interest rate swap (CNY NDIRS) contracts has been extended from 5.5 years to 11 years to better assist overseas investors in managing interest rate risks [2].