Transfer: week to Shanghai

Today is the first transaction day officially launched for the interconnecting of domestic and Hong Kong interest rates with market interconnectivity. The Foreign Bank of the Bank of Fukuoka (China) and the Bank of Chartered Banks (China) announced that a number of offshore institutional investors had been assisted in completing the exchange of interest rates between the people’s currency through the “North-to-North” interbank market in China as the first foreign bank to participate in the “North-to-North” exchange.

Through North-South swaps, HS has assisted a number of offshore institutions, such as CSI Capital Management Limited, Aya (Dymon Asia), to participate directly in the exchange of interest rates between banks in the interior, and to complete transactions on the first day, with floating reference rates involving seven days of interbank repurchase interest rates (FR007) and three months of inter-bank breaking interest rates ( SHIBOR3M). Among them, China, as one of the first “North-to-North” bidders, is a counterpart of many offshore institutions. At the same time, Hong Kong, as an investor, acts as an offshore clearing agent.

In addition, a number of members of the Group, located in the interior, Hong Kong and London, are fully involved in the first day of the “North-to-North” trading, and the cooperative “North-to-North” swap is well off. Among them, SBC (China) Ltd. (“Cros China”) was the first “North-to-North” quotor to provide offshore investors with cross-border exchange of bids for exchange of interest rates in the interbank financial derivatives market; and SBC Bank (Briting Britain) as one of the five banks able to provide “interchange” customer settlement services to provide customer settlement services for international investors through derivative transactions conducted through “interchange”. In addition, SBC (Hong Kong) Ltd., as the first investor of North-North swap, was involved in the first day of the North-to-North swap transaction.

The Deputy President and Joint Director-General of the Ministry of Capital Markets and Securities Services of Hong Kong, China, stated in the autumn that “the roll-out of “the exchange of information” was another milestone in the interconnectivity of the Chinese bond market with offshore markets, which would allow offshore investors to better manage the interest rate risk of people’s currency assets. `North’s first day of exchange starts, offshore investors are active and actively engaged in the exchange of interest rates in the national currency that are better mobile and more diversified. In addition, offshore investors need not liquidate funds through internal liquidation, effectively reducing the risk of transaction-to-mandate default and improving the efficiency of the settlement.

The slag struck the Vice-President of China, and the Director-General of the Financial Markets Department, Nanjing, stated that “The North-North Exchange of Exchanges” was a milestone in the further opening of the Chinese bond market and the financial derivative market. It will further build on the product base of the Chinese financial markets, provide better and convenient risk management tools for offshore investors to participate in Chinese bond markets, and enhance the confidence of offshore investors to participate more deeply in Chinese bond and financial derivative markets.”

Under the Interim Scheme for the Management of Interbanking of Market Interconnectivity between the Inland and Hong Kong Interest rates, published by the People’s Bank, investors outside “North-to-people” may at this stage exchange rates in the interbank market for people who meet the requirements of centralized settlement, and may better risk the hedge interest rates from a risk management perspective.