Deutsche Bank to play key role in connecting China with international investors

Deutsche Bank to play key role in connecting China with international investors

(IN BRIEF) Deutsche Bank has been named a market maker for Northbound Swap Connect, a mutual access initiative between Hong Kong and China’s interest rate swap markets. The launch of Swap Connect will provide overseas investors with access to an important hedging tool for investing in the China Interbank Bond Market and will mark an important step in the internationalization of the renminbi. The initiative reinforces the role of Hong Kong in connecting China with international investors.

(PRESS RELEASE) FRANKFURT, 9-May-2023 — /EuropaWire/ —  Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB), Germany’s leading multinational investment bank and financial services company, has announced that it will be named a market maker for Northbound Swap Connect, the first stage of mutual access between Hong Kong and China interest rate swap markets, which is set to officially launch on May 15, 2023.

This significant development will provide overseas investors with access to China’s financial derivatives market, which has been closed to non-domestic participants until now. Swap Connect is expected to be an important hedging tool for those investing in the China Interbank Bond Market (CIBM), enabling them to manage and reduce risks related to interest rates.

In addition, Swap Connect will contribute to the internationalization of the renminbi (RMB). The initiative builds upon the success of Bond Connect and reinforces Hong Kong’s position as a key hub for connecting China with international investors.

Deutsche Bank’s appointment as a market maker for Northbound Swap Connect underscores its long-standing commitment to supporting the development of China’s financial markets and strengthening its relationships with clients across the region.

Rose Zhu, Chief Country Officer for China said: “We are proud to be named a market maker for Swap Connect, which will be a huge leap forward in developing the domestic derivatives and bond markets. Leveraging our cross-border strengths, we look forward to playing an active role in helping international investors get a head start via Swap Connect. We remain committed to helping accelerate the opening up of China’s financial markets and RMB internationalization.”

Lillian Tao, Head of Macro & GEM Sales for China said: “Early on, we received many enquiries and have seen strong interest in participating in Swap Connect. This has been despite its complex fusion of China, Hong Kong and western financial infrastructure. This indicates an increased sophistication and openness amongst international investors, and we are observing an appetite for further deregulation in areas including domestic repurchasing, futures and options.”

Deutsche Bank AG                                       

Media Relations   

Amy Chang
Phone: +852 2203 8434
Email: amy.chang@db.com

Kate Fields
Phone: +852 2203 5094
Email: kate.fields@db.com

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SOURCE: Deutsche Bank AG