Bloomberg Facilitated Trades for Offshore Investors on First Trading Day of Swap Connect

On the inaugural day of trading via Swap Connect, more than 20 offshore investors completed trades with onshore dealers on Swap Connect using Bloomberg.

Bloomberg’s Swap Connect solution facilitates seamless trading for offshore investors participating in China’s interbank interest rate swaps (IRS) markets, via Swap Connect, without disruption to their current workflow on the Bloomberg Terminal. Swap Connect is the first derivatives trading link between Mainland China and Hong Kong and with northbound Swap Connect commencing today, offshore investors can now access China’s onshore derivatives markets.

Offshore investors that made trades over Bloomberg’s Swap Connect solution today include Bank of China (Hong Kong), Bank of Communications Hong Kong Branch, China CITIC Bank International Limited, China Construction Bank (Asia) Corporation Limited, China Construction Bank Corporation Hong Kong Branch, China Everbright Bank Co., Ltd. Hong Kong Branch, CICC International, Crédit Agricole Corporate & Investment Bank, Eastfort Asset Management Private Limited, The Hongkong and Shanghai Banking Corporation Limited, Huatai Financial Holdings (Hong Kong) Ltd, Industrial and Commercial Bank of China (Asia) Limited, Industrial Bank Co., Ltd. Hong Kong, and Standard Chartered Bank (Hong Kong) Limited, amongst others.

“The launch of northbound Swap Connect over Bloomberg today is the latest example of Bloomberg’s leading role of connecting global investors with China’s markets through the power of technology,” said Bing Li, Head of Asia Pacific at Bloomberg. “We are proud to be the partner of choice of global investors when they tap the derivatives markets in onshore China.”

Xu Haifeng, Deputy Chief Executive of Bank of China (Hong Kong), said: “With the development of the RMB markets, international investors have demonstrated their increasing interest in RMB assets and bonds and a growing need for risk management tools. Swap Connect marks another milestone in connecting the financial markets between the Chinese mainland and Hong Kong, providing offshore investors access to onshore derivatives markets and satisfying their needs for managing interest rate risks. We are pleased to work with Bloomberg to enhance the liquidity and hedging efficiency of RMB derivatives markets.”

William Shek, Head of Markets and Securities Services Hong Kong at HSBC, said: “As a designated market maker and clearing broker on day one of trading, we are pleased to work with Bloomberg’s technology and trading solutions to efficiently support our global clients to access to China’s onshore derivatives markets via Swap Connect.”

Bloomberg is a PBOC approved third-party electronic trading solutions provider for northbound Swap Connect. Bloomberg’s Swap Connect solution supports financial instruments eligible in the Swap Connect scheme, which uses reference interest rates including FR007 (7-day fixing repo rate) and SHIBOR 3M (Shanghai Interbank Offered Rate 3 Months). Qualified offshore investors can use the Bloomberg Terminal to send a Request-for-Quote (RFQ) to CFETS and receive quotes from user-selected Swap Connect onshore dealers. CFETS has designated 20 financial institutions as onshore dealers for Swap Connect.

Luo Dongyuan, Group Vice President of Guotai Junan Securities, said: “As Guotai Junan Securities continues to expand internationally, we are excited to seize the opportunities afforded by Swap Connect with offshore investors. This initiative enhances the attractiveness of RMB assets and is already generating interest within China and abroad.”

Zhu Hong, Deputy Head of Financial Markets at CITIC Bank, said: “Swap Connect marks an important new chapter in the growing synergy between Chinese markets and their global counterparts and it stands to benefit both onshore and offshore investors. The increased presence from northbound investors will bring new depth and opportunity to China’s market and the new trading link will give international investors new scope to take part in China’s economic growth. We’re proud to take part in Swap Connect as a designated dealer and will provide excellent services for offshore investors.”

Bloomberg provides a range of powerful trading and trade-related solutions around the world. It also offers a full suite of solutions for China’s bond markets and cross-border investment. For more information, please visit RMB-GO- in the Bloomberg Terminal.

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