New Swap Connect Scheme Enables Global Investors to Secure Margin Collateral Using Chinese Bond Holdings

Tuesday, 9 July 2024, 06:52

The recently introduced Swap Connect scheme permits international investors to utilize their Chinese domestic bond holdings as margin collateral for Northbound trading. This initiative, set to launch later this year, signifies a significant development in cross-border investment strategies. By allowing bond holdings as collateral, investors gain greater flexibility and access to trading opportunities. The move is expected to enhance liquidity and efficiency in the market, benefiting both investors and the financial ecosystem.

South China Morning Post — New Swap Connect Scheme Enables Global Investors to Secure Margin Collateral Using Chinese Bond Holdings

Swap Connect Scheme: Enhancing Cross-Border Investment

The Swap Connect scheme is introducing a new method for global investors to secure margin collateral using their Chinese domestic bond holdings for Northbound trading.

Increased Flexibility and Access

Investors now have the opportunity to pledge their Chinese bond holdings, unlocking greater flexibility and access to trading opportunities in the market.

Efficiency Boost: By accepting bond holdings as collateral, liquidity and efficiency are set to increase in the market.

The initiative is expected to benefit both investors and the financial ecosystem, fostering growth and stability.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.