Recently, BOC Hong Kong (Holdings) Limited, as the first overseas clearing member of the Shanghai Clearing House, successfully launched proprietary clearing services for RMB interest rate swaps, standard bond forwards, and standard interest rate swaps. This marks the first time the Shanghai Clearing House has directly provided central counterparty clearing services to an overseas institution.

Since BOC Hong Kong became the Shanghai Clearing House’s first overseas clearing member in April this year, the clearing house has actively guided its preparations for direct proprietary clearing of interest rate derivatives. On one hand, it collaborated closely with BOC Hong Kong and Bank of China to provide business training and support. On the other hand, it assisted BOC Hong Kong in completing system testing, connectivity, and regulatory approvals for cross-border data reporting, ensuring smooth operations.

The newly launched business adopts a "direct trading + direct clearing" model. As an overseas clearing member, BOC Hong Kong can directly clear and settle interest rate derivative transactions executed on the interbank local currency trading platform through its overseas fund account with the Shanghai Clearing House.

This introduction of overseas clearing members for proprietary interest rate derivatives clearing represents a historic step in the Shanghai Clearing House’s internationalization efforts.

1. **Expanding Offshore RMB Asset Pool**: Leveraging the dual functions of central counterparty clearing and issuance registration custody, the clearing house aims to enhance BOC Hong Kong’s strategic advantages as a global custodian and RMB clearing bank, promoting offshore RMB market development.

2. **Providing More Risk Hedging Tools**: By utilizing the diverse range of interbank interest rate derivatives, the initiative meets the trading and risk management needs of overseas institutions, facilitating interest rate risk management for offshore bondholders and supporting multi-tiered bond market development and RMB internationalization.

3. **New Pathway Under CIBM Direct**: Under the China Interbank Bond Market (CIBM Direct) framework, the Shanghai Clearing House, recognized as a qualified central counterparty in multiple jurisdictions (including the EU, Hong Kong, and the UK), offers overseas institutions easier market access and capital requirement benefits, reinforcing risk prevention and ensuring financial market stability amid openness.

Looking ahead, the Shanghai Clearing House will accelerate its international expansion, broaden its overseas clearing member network, and strengthen its role as a financial infrastructure bridge. During the "15th Five-Year Plan" period, it aims to become a "single access point" hub connecting global financial markets, enhancing RMB risk management services and high-level financial openness. This will further boost Shanghai’s competitiveness as an international financial center and support China’s goal of becoming a financial powerhouse.