上海清算所董事长马贱阳在2024年香港交易所定息及货币欧洲峰会的主旨演讲（英文实录）

Speech by Mr. Ma Jianyang, Chairman of Shanghai Clearing House, at the HKEX FIC Summit Europe 2024, London, 25 September 2024

I’m very glad to attend this summit. Just now, we received a very warm welcome from Ms. Chan. HKEX is a very important partner of Shanghai Clearing House (SHCH), playing an important role in the cross-border RMB markets.

Over the past few years, the successful launch of Stock Connect, Bond Connect, and Swap Connect have all provided safe and efficient ways for the opening-up of China's financial markets. Especially the Swap Connect, where HKEX, SHCH and other partners have worked closely to build the world's first derivatives mutual market access program. It provides a one-stop onshore RMB IRS trading and clearing service for offshore investors to help them manage their interest rate risks.

On behalf of SHCH, I would like to thank HKEX and all market participants, for your long-standing support and contributions.

SHCH is the only CCP in China’s interbank market and one of the three bond CSD in China. Over the years, SHCH has developed CCP and CSD services together. We provide CCP services for five markets, including bonds, interest rates, FX, credit, and commodity derivatives. We also provide CSD service, including bond issuance, registration, custody and settlement. By the end of August this year, our clearing volume reached about 450 trillion RMB. Among them, the CCP clearing notional reached 131 trillion RMB, with 6.7% growth year-on-year. The bonds in custody reached 41 trillion RMB, with 21.6% growth year-on-year.

In recent years, through internationalization, professionalism, and digitalization, SHCH has been building a global platform for RMB assets allocation and risk management. We are trying to make our services more integrated into the global markets, better bridge onshore and offshore investors, enhance our service capability, while maintaining high standard risk management. In promoting the opening-up of China’s financial markets, SHCH is becoming a hub for investors to access both domestic and international financial markets.

For the derivatives clearing, SHCH, HKEX and other partners, launched Swap Connect in May 2023. It provides efficient access for international investors to trade and clear onshore RMB IRS. By the end of August this year, with 84 domestic and international participants, Swap Connect volume has passed 3 trillion RMB.  Swap Connect now accounts for 82% of the total trading volume of international investors in the onshore derivatives market. Swap Connect has become their major channel for RMB interest rate risk management.

For the custody and settlement, SHCH and HKMA CMU launched Bond Connect to provide custody and settlement solutions for both domestic and international investors. Since its launch seven years ago, Bond Connect has seen fast growth. The total holdings of onshore bonds by international investors exceeded 4.5 trillion RMB. The trading volume has jumped from 31 billion RMB in the first month after its launch to a recent high of 1.06 trillion RMB, reflecting a more than 30-fold increase. This reflects international investors' strong interest in China's bond market and their confidence in the development of China’s economy.

For the bond issuance, SHCH has launched the Yulan Bonds service to meet domestic issuers’ needs for overseas financing. Through a cross-border connect with Euroclear Bank, the Yulan Bonds service fits into international markets and supports the issuance of major products. The Yulan Bonds service has become one of the major channels for Chinese institutions to issue bonds abroad. Yulan Bonds cover a wide range of currencies and have been included in the Euroclear Bank's third-party collateral services. This promotes the internationalization of Chinese bonds.

Moving forward, SHCH will continue to uphold the principles of openness, inclusiveness, and mutual benefit, and to improve foreign investors' access to China's financial market. We are actively exploring measures to further facilitate cross-border investment and financing.

First, we are expanding the Swap Connect. We are working with HKEX to add the range of products and tenors. We are also looking into introducing standardized interest rate derivatives, more compression services, and non-cash collateral to meet market needs.

Second, we are actively preparing for opening up the onshore bond repo market to foreign investors, further increase their liquidity management tools.

Third, with our partners, we will continue to improve the Yulan Bonds service, to better support corporate financing and the real economy.

Ladies and Gentlemen, SHCH will continue to deepen our cooperation with HKEX and other domestic and international FMIs. Together, we will strive to enhance connect programs and build an innovative international financial platform, and contribute to the higher-level opening-up of China’s financial market.

Wish to see you at SHCH. Thank you and wish the summit a great success.