Pan Gongsheng: Speech - Launch ceremony of Swap Connect
Speech by Mr Pan Gongsheng, Deputy Governor of the People's Bank of China, at the
launch ceremony of Swap Connect, Hong Kong, 15 May 2023.
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Distinguished Chief Executive John Lee, Deputy Director Wang Linggui, Deputy
Director Yin Zonghua, Financial Secretary Paul Chan, honorable guests, and dear
friends from the press,
Good morning! I am glad to join you to celebrate the official launch today of Swap
Connect. On behalf of Governor Yi Gang and Party Secretary Guo Shuqing of the
People's Bank of China (PBOC), and on behalf of the PBOC and the State
Administration of Foreign Exchange (SAFE), I would like to extend warm
congratulations! I would also like to express our heartfelt thanks to all our colleagues
and market participants for their hard work and efforts to make Swap Connect a reality!
With the approval of the Central Government, the cooperative initiative was announced
last July to develop mutual access between the Mainland and Hong Kong and interest
rate swap markets, known as Swap Connect. Building on Bond Connect, Swap
Connect will enable overseas and domestic investors to participate in the financial
derivatives markets in the Mainland and Hong Kong through a connection between
infrastructure institutions in both places. It aims to better meet investors' demands for
interest rate risk management.
Over the past year, the PBOC, the Hong Kong Securities and Futures
Commission (SFC), and the Hong Kong Monetary Authority (HKMA) have enhanced
communication and collaboration, and together we've steadily advanced institutional
arrangements and guided infrastructure institutions in both places to complete the
preparations in various aspects such as rules and systems. Today, the official launch of
Swap Connect is another milestone in the opening-up of China's financial markets to
the outside world. It fully demonstrates the Central Government's emphasis
on consolidating and enhancing Hong Kong's status as an international financial center,
and its firm confidence in Hong Kong's long-term prosperity, stability and development.
As a major international financial center around the world, Hong Kong boasts a highly
open business environment, a profound financial market system, perfect financial
infrastructures, and an international regulatory system for financial markets. Over the
years, we've worked together with Hong Kong's financial sector to raise the efficiency
and level of financial market connectivity between the Mainland and Hong Kong, so
as to constantly inject new vitality and momentum into deepening reform and
openingup of financial markets in the Mainland and into developing Hong Kong as an
international financial center.
It is a major policy of the CPC Central Committee and an important mission of the
PBOC to unswervingly expand the high-standard opening-up of China's financial
markets to the outside world, support the prosperity and development of Hong Kong as
an international financial center, and maintain China's financial security.
Going forward, the PBOC will resolutely implement the decisions and arrangements of
the CPC Central Committee, continue to deepen practical cooperation with Hong
Kong's authorities, firmly support Hong Kong's efforts to enhance its status as an
international financial center, and steadily advance the reform, opening-up and
highquality development of China's financial markets.
To conclude, wish Hong Kong a greater success as an international financial
centre! Thank you!