China Swap Connect Trading Volume Heads Toward 1 Trillion Yuan

Trading volumes through China’s Swap Connect are poised to accelerate as a growing appetite for yuan debt drives a surge in hedging demand, according to strategists.

The platform, which grants offshore investors access to mainland interest-rate swaps, could see monthly volumes jump to about 1 trillion yuan ($147 billion), BNP Paribas Securities (China) and Australia & New Zealand Banking Group Ltd. say.