Core Insights - The "Northbound Swap Connect" has been expanded to include interest rate swap contracts referencing the one-year Loan Prime Rate (LPR1Y), enhancing risk management tools for overseas investors [1][2] - The initiative aims to facilitate the internationalization of the Renminbi by providing a more efficient and secure channel for domestic and foreign investors to participate in financial derivatives markets [1] Group 1: Expansion of Northbound Swap Connect - On September 22, the Hong Kong Stock Exchange, in collaboration with the China Foreign Exchange Trading Center and Shanghai Clearing House, launched new interest rate swap contracts under the "Northbound Swap Connect" [1] - On the first day of trading, 31 domestic and foreign institutions participated, executing 53 transactions with a nominal principal amount of 6.46 billion RMB [1] Group 2: Performance 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 conducted 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 contracts has been extended from 5.5 years to 11 years to better assist overseas investors in managing interest rate risks [2]

Core Insights - The "Northbound Swap Connect" has been expanded to include interest rate swap contracts referencing the one-year Loan Prime Rate (LPR1Y), enhancing risk management tools for overseas investors [1][2] - The initiative aims to facilitate the internationalization of the Renminbi by providing a more efficient and secure channel for domestic and foreign investors to participate in financial derivatives markets [1] Group 1 - On September 22, 31 domestic and foreign institutions participated in the new interest rate swap contracts, with a total trading volume of 64.6 billion RMB [1] - The "Swap Connect" has been operational since May 15, 2023, and has become a significant channel for foreign institutions to manage Renminbi interest rate risks, with over 15 countries and regions involved [2] - As of August 2025, 82 foreign financial institutions have completed more than 15,000 Renminbi interest rate swap transactions, totaling approximately 8.15 trillion RMB in nominal principal [2] Group 2 - The Hong Kong Stock Exchange plans to continue collaborating with market participants to enrich "Swap Connect" products and improve risk management frameworks [2] - Starting September 22, the maximum term for existing Renminbi non-deliverable interest rate swap contracts has been extended from 5.5 years to 11 years to better assist foreign investors in managing interest rate risks [2]