China is planning to broaden its derivatives trading link with Hong Kong by allowing global investors to access Standard Interest Rate Swaps and Standard Bond Forwards by 2028, Bloomberg News reported Thursday.
Under the guidance of China's central bank, the China Foreign Exchange Trade System and Shanghai Clearing House are in talks with OTC Clearing Hong Kong to add the two standardized onshore interest-rate products to the Swap Connect program, according to the report.
The initiative aims to further open China's debt market to foreign capital as well as internationalize the yuan and reinforce Hong Kong's role as the currency's leading offshore hub, Bloomberg wrote.
The People's Bank of China, China Foreign Exchange Trade System, Shanghai Clearing House and OTC Clearing Hong Kong did not immediately respond to' request for comment.
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