China Swap Connect Volume May Hit 1 Trillion Yuan a Month as Yuan Debt Demand Rises
Updated
Updated · Bloomberg · May 18
China Swap Connect Volume May Hit 1 Trillion Yuan a Month as Yuan Debt Demand Rises
1 articles · Updated · Bloomberg · May 18
1 trillion yuan ($147 billion) in monthly trading is now in sight for China’s Swap Connect, according to forecasts from BNP Paribas Securities (China) and ANZ.
Rising offshore demand for yuan-denominated debt is driving the increase, as investors use the platform to hedge interest-rate exposure tied to those holdings.
Swap Connect gives offshore investors access to mainland interest-rate swaps, making it a key channel for managing risk as foreign participation in China’s bond market grows.
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