China corporates drive up onshore OTC interest rate trading

But speculation and not hedging could be behind the increase

peoples-bank-of-china-new
PBoC: rate cuts spurring IRS activity

Trading volumes of interest rate swaps (IRSs) have hit record highs in China this year with a significant portion of the increased volumes coming from onshore corporates looking to position themselves to benefit from expected additional rate cuts.

The People's Bank of China (PBoC) has cut both interest rates and the reserve requirement ratio – the amount of depositor balances banks must have available as cash – twice this year, as the central bank looks to reduce corporates' funding costs and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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 individual account here