ICBC Achieves Landmark First Swap Connect Trade in Europe Through Bloomberg

ICBC's Historic First Swap Connect Trade in Europe

On October 16, 2025, the Industrial and Commercial Bank of China (ICBC) marked a significant milestone by successfully executing its first Swap Connect trade in Europe through Bloomberg's innovative services. This event underscores the growing integration of international financial markets, particularly as it relates to China's onshore derivatives market.

The successful execution of this swap illustrates the bank's commitment to providing global investors access to the Chinese financial landscape. With the completion of this trade, ICBC Luxembourg is now part of a broader initiative aimed at expanding the reach of Swap Connect, which first launched in May 2023. This system allows offshore investors to participate in Mainland China’s Over-The-Counter (OTC) derivatives markets, delivering enhanced opportunities to hedge against market volatility and interest rate risk onshore.

This achievement builds on ICBC's previous success in Dubai, where it completed the first Swap Connect transaction in the Middle East. The underlying message is clear; the demand for accessible financial products that bridge offshore and onshore markets has never been greater. Chen Zhao, Deputy Head of Financial Market at ICBC Luxembourg Branch, emphasized the importance of this transaction, stating, "This transaction demonstrates both the growing demand from international clients to hedge exposure in China and our capability of connecting them efficiently to the onshore RMB market."

Moreover, Bloomberg's involvement as a third-party electronic trading provider approved by the People’s Bank of China (PBOC) delivers additional credibility and functionality to the Swap Connect framework. Andrew Beacham, Global Head of Emerging Markets Trading Product at Bloomberg, expressed his enthusiasm for this development, stating, "We are delighted to strengthen our collaboration with ICBC who have been a first mover with Swap Connect in both Europe and the Middle East. Our commitment to deepening liquidity and broadening foreign participation in China's bond markets is paramount."

Bloomberg's online terminals offer eligible offshore investors advanced access to the necessary infrastructure for trading RMB interest rate swaps (IRS) via this program. In a world increasingly focused on diverse market participation, these developments are essential for investors seeking comprehensive financial services. Bloomberg continues to cater to over 9,000 client firms across 175 markets globally, ensuring a robust platform for efficient trading and risk management.

This first Swap Connect trade in Europe is not simply a procedural accomplishment for ICBC but rather a critical component of a more extensive global strategy aimed at reinforcing international financial relationships and enhancing participation from global investors in China's financial markets.

As the world shifts back towards economic recovery modes, coordinated efforts like those demonstrated by ICBC and Bloomberg may lead to more robust financial partnerships and opportunities. The successful completion of this trade sets the tone for future endeavors in expanding the impact and accessibility of China’s onshore financial products to a broader array of international investors. This landmark achievement resonates with the evolving narrative of globalization in financial services and showcases the possibilities through strategic collaborations.

In conclusion, ICBC’s execution of its first Swap Connect trade in Europe symbolizes a critical step forward in furthering the interconnectedness of financial markets, providing promising avenues for international investors eager to explore the benefits of participating in China’s burgeoning financial ecosystem.

For additional details and real-time trading facilities, investors can visit the Bloomberg Terminal for the latest updates and insights on China’s financial markets and products.