China has allowed global investors awaiting the reopening of the Chinese economy to invest directly in a new strategic instrument, whose market size exceeds several trillion dollars.
Internal interest rate swaps, which had an annual turnover of $3 trillion last year, traded through the so-called "Swap Connect" program between mainland China and Hong Kong, will be available to offshore funds with easy access to derivatives that will help hedge their exposure to the world's second-largest bond market. The channel also enables them to bet on key money market prices sensitive to China's monetary policy.
Source (Al-Arabiya.net Website, Edited)
