HSBC trades first renminbi non-deliverable swaption

The transaction involved HSBC buying a five-year option to enter into a 50 million renminbi ($6.4 million) five-year non-deliverable interest rate swap (NDIRS) with a financial institution counterparty.

In August, HSBC and Standard Chartered Bank conducted the first ever renminbi non-deliverable interest rate swap transaction.

Anita Fung, head of global markets, Asia-Pacific at HSBC in Hong Kong, said: “Following the successful launch of NDIRS contracts in August, there has been a healthy pickup in activity, with the volume of such contracts reaching 6.7 billion renminbi in barely three months.”

“Development of the renminbi NDIRS swaption provides offshore market participants [with] the opportunity to hedge against the underlying risk, denominated in a currency that is not at this stage convertible on the capital account,” Fung added.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: