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 "Swap Connect," launched on May 15, 2023, has been operating smoothly and has become a vital channel for foreign institutional investors to manage RMB interest rate risks [1][2] Group 1 - On the first trading day, 31 domestic and foreign institutions completed 53 transactions with a nominal principal amount of 6.46 billion RMB [1] - The LPR is widely used in China's loan pricing sector, and its inclusion in the "Northbound Swap Connect" is expected to meet the diverse interest rate risk management needs of overseas investors [1][2] Group 2 - The "Swap Connect" facilitates RMB interest rate swap trading and centralized clearing for domestic and foreign investors without altering their trading habits [2] - As of August 2025, 82 foreign financial institutions from 15 countries and regions have completed over 15,000 RMB interest rate swap transactions, totaling approximately 8.15 trillion RMB in nominal principal [2] - Future collaboration among the three infrastructure entities aims to enrich "Swap Connect" products and enhance the risk management framework, promoting the joint development of financial markets in mainland China and Hong Kong [2]