Group 1 - The Hong Kong Securities and Futures Commission (SFC) is collaborating with mainland authorities and the Hong Kong Stock Exchange to develop Hong Kong as an offshore risk management hub [1] - The SFC is exploring the Southbound Swap Connect to allow mainland investors to utilize Hong Kong's swap market for expanding their risk management toolkit [1] - The introduction of the Swap Connect has seen significant growth, with trading volume reaching approximately 10% of the mainland interest rate swap market, totaling over 8.5 trillion RMB as of September [1][2] Group 2 - Since the introduction of the regulatory framework in 2014, Hong Kong's OTC derivatives market has rapidly developed, with the nominal value of Asian stock OTC positions reaching 800 billion USD, a 70% increase over three years [2] - The majority of OTC stock derivatives positions cover Asian securities outside of Hong Kong, with one-third tracking Hong Kong-listed stocks and indices, while two-thirds involve other Asian securities [2] - Hong Kong has become the largest OTC derivatives market related to mainland assets globally, driven by the growth of RMB foreign exchange and interest rate derivatives [2] Group 3 - The OTC stock derivatives market for locally listed securities in Hong Kong has reached 250 billion USD, doubling in size over the past three years, aligning with a 40% growth in exchange-traded derivatives [3] - The combined OTC and exchange-traded derivatives market accounts for 12% of the free float market capitalization of Hong Kong's stock market, indicating a strengthening position as a risk management hub in Asia [3] - The outstanding OTC derivatives positions cover over 2,000 stocks and ETFs, with approximately 80% related to stocks and 20% to indices [3]