(Bloomberg) -- China and Hong Kong are working to develop a trading arrangement to allow overseas investors to execute interest-rate derivatives with onshore traders.
The launch of the so-called “Swap Connect” is now subject to regulatory approvals, market readiness and the completion of operational arrangements, according to a joint statement by the People's Bank of China and Hong Kong authorities. Northbound trades will be allowed before the start of the southbound link.
China will also raise currency its swap with Hong Kong to 800 billion yuan ($119 billion) from 500 billion yuan, the PBOC said in another announcement.
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