As China reopens, global investors are gaining a new strategic tool: onshore interest-rate swaps. This Swap Connect program, between mainland China and Hong Kong, facilitates overseas funds’ access to derivatives, allowing them to hedge against exposure to the world’s second-largest bond market and speculate on key money-market rates. This initiative aligns with China’s easing policy as its economic recovery progresses and contributes to the nation’s goal of attracting more global investors. To regulate, a daily net trading limit of 20 billion yuan is in place, with HSBC, Citigroup, and JPMorgan, among the authorized banks to structure trades for foreign funds via Hong Kong. This risk-mitigating instrument is particularly timely, as rising US interest rates exert outflow pressure on China’s bond market.