The plan may miss next year1The target launch window at the beginning of the month, because the regulatory authority has not yet finalized the rules required to operate the trading mechanism.
According to insiders, Hong Kong "Exchange Link"(Swap Connect)The launch of the plan is facing delay because the Beijing regulatory authorities have not yet finalized the rules required to operate the trading mechanism. "Swap Connect" will enable global investors to easily participate in China5A trillion dollar swap market. 7It was announced during the visit to Hong Kong in August, and was regarded as an important new channel to further open China's huge onshore market. It is also known as the gospel of Hong Kong. The COVID-19 restrictions have hit the Hong Kong economy and weakened the competitiveness of Hong Kong's financial industry. However, the plan is likely to miss next year1The target launch window at the beginning of the month, because the plan was announced nearly5Six months later, domestic regulators have not yet released basic information about the final rules. The head of an industry organization in Hong Kong said: "Financial institutions are very interested in this, but no one has seen any details." He added that regulators in Hong Kong and the mainland need to solve a series of urgent problems before they can publish any regulations. "This involves complex jurisdictional and legal issues," said the head of the industry organization. "It's not just about the execution of the transaction1This goal can be achieved at the beginning of the month. " "Swap Connect" and Hong Kong's successful stock and bond interconnection mechanisms adopt similar models, which enable foreign investors to participate in China's onshore bond and stock markets in Shanghai and Shenzhen. The latest Unicom mechanism will initially allow only foreign investors to enter China's RMB denominated interest rate swap market. Data providerClarus Financial TechnologyAccording to the data of5Trillion dollars. Thereafter, the mechanism will be expanded to allow mainland traders to enter the Hong Kong swap market. The People's Bank of China, Hong Kong Securities andfuturesCommission on Affairs(Securities and Futures Commission)And the Hong Kong Monetary Authority(Hong Kong Monetary Authority)to7month4The "Interchange Pass" was announced for the first time on March. It will be managed by the Hong Kong Exchange and Clearing House(Hong Kong Exchanges and Clearing)And Chinaforeign exchangeTransaction Center(China Foreign Exchange trading System)And Shanghai Clearing House(Shanghai Clearing House)Cooperative operation. The regulatory authority said in the announcement that the plan will "start from the date of this announcement6It will be officially launched in six months, "and the Hong Kong Monetary Authority said in another statement that the relevant infrastructure institutions in both places will actively promote the relevant preparatory work," with a view to6The "Interchange Pass" will be launched after six months. A statement issued by the Hong Kong government later confirmed that "after the completion of relevant rule making and system construction, response to the actual needs of market participants, obtaining relevant regulatory permits and all other necessary work are ready", the plan will6It will be officially launched in six months. In response to the request for comment, the HKMA asked reporters to ask the SFC, the main regulator of the scheme. The SFC said: "According to7The plan for the joint announcement in January, and the preparatory work is expected to require6Months or more. " HKEx said: "The launch date has not been determined." Li Jiachao, Chief Executive of Hong Kong(John Lee)He praised the plan as a "milestone" in the integration of Hong Kong and the mainland financial markets, which will "enhance investors' confidence in the country's continued support for the development of the Hong Kong International Financial Center". "Swap Connect" will allow global investors to have more channels to hedge interest rate risk. While the mechanism is expected to be delayed, China's domestic bond market continues to see a large amount of capital outflows. Since this year, foreign investors have sold off the value6910RMB 100 million (total970US $100 million) of China's government bonds, instead of buying US dollar bonds, because the Federal Reserve(Fed)The interest rate hike pushed the yield of US treasury bonds higher than that of Chinese treasury bonds denominated in RMB. In recent months, relevant documents of "Interchange" circulated internally are "relatively basic and lack of details". Senior insiders also said that once the rules are finally published, it will take time for the exchange to start and run. The head of legal affairs of another industry organization in Hong Kong said: "Our idea is that when the final rules are issued, Swap Connect will be ready in a few months. I am very confident that Swap Connect will be launched in the first half of next year." |
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