Global investors seeking to trade China’s reopening were given access to a new strategic tool on Monday: onshore interest rate swaps that had an annual turnover of $US3 trillion ($4.5 trillion) last year.
The so-called Swap Connect program between mainland China and Hong Kong provides overseas funds with easier access to the derivatives that will help hedge their exposure to the world’s second-biggest bond market. The channel also enables them to bet on key money-market rates that are sensitive to China’s monetary policy.
