彭博Bloomberg·2025-10-17 06:04Core Viewpoint - The successful completion of the first "Swap Connect" transaction in Europe by the Industrial and Commercial Bank of China (ICBC) Luxembourg branch signifies the expansion of the "Swap Connect" mechanism in global markets, enhancing international investors' participation in China's domestic derivatives market [2]. Group 1: "Swap Connect" Transaction - ICBC Luxembourg branch completed the first "Swap Connect" transaction in Europe, following the first transaction in the Middle East by ICBC Dubai branch, indicating the global expansion of this business [2]. - The transaction highlights the accelerated application of "Swap Connect" for managing RMB interest rate risks by foreign institutions, reflecting the ongoing opening and convenience of China's financial markets under the joint efforts of regulatory bodies in Hong Kong and the mainland [2]. - The completion of this transaction is seen as a significant milestone in ICBC's global derivatives business expansion, showcasing the growing demand from international clients to hedge risks associated with Chinese assets [2]. Group 2: Bloomberg's Role - Bloomberg's global emerging markets trading product head expressed satisfaction in deepening cooperation with ICBC to support the initiation of "Swap Connect" transactions in Europe and the Middle East, aiming to enhance liquidity and expand foreign investor participation in China's bond market [2]. - "Swap Connect" was launched in May 2023 to allow foreign investors to participate in China's onshore OTC derivatives market, with Bloomberg recognized by the People's Bank of China as a provider of solutions for "Northbound Swap Connect" [2]. - Eligible foreign investors can utilize Bloomberg's "Swap Connect" solution through Bloomberg terminals to conduct RMB interest rate swap (IRS) transactions [2].