China's interbank trading platform said on Thursday it will lift the daily net trading cap under Swap Connect to 45 billion yuan (about $6.3 billion) from 20 billion yuan starting Oct. 13, 2025, to boost activity and help offshore investors hedge yuan interest rate risk.
The China Foreign Exchange Trade System (CFETS) said the scheme will also introduce a dynamic market-maker mechanism and expand its pool of quoting institutions.
Swap Connect, launched in May 2023, gives foreign investors access to onshore derivatives for managing yuan-denominated assets. By end-August, 82 overseas institutions from 15 countries and regions had conducted more than 15,000 trades with a notional value of 8.15 trillion yuan.
