The People's Bank of China Guangdong Provincial Branch recently organized an exchange meeting on interbank derivatives business in Guangdong. The event focused on the development of interbank derivatives operations and risk management, featuring business presentations and practical experience sharing. The session aimed to guide financial institutions in conducting standardized, simple, and transparent interbank derivatives activities to enhance their risk management capabilities. Participants included representatives from the People's Bank of China Shenzhen Branch, the National Financial Regulatory Administration's Guangdong and Shenzhen bureaus, and the Clearing House for Interbank Market Settlements (Shanghai Clearing House). More than 100 attendees from over 40 financial institutions—such as banks, securities firms, insurance companies, asset management companies, fund companies, financial leasing firms, finance companies, and auto finance companies—took part in the meeting.

China's 15th Five-Year Plan emphasizes the steady development of futures, derivatives, and asset securitization. Interbank derivatives business involves transactions in interest rate and foreign exchange derivatives conducted by financial institutions in the interbank market. These include centrally cleared standardized and customized instruments like standard bond forwards, standard interest rate swaps, and foreign exchange forwards. Such tools are vital for risk management, enabling institutions to hedge against fluctuations in interest rates and exchange rates that affect asset-liability values and operational stability. Regular use of derivatives for hedging helps improve operational resilience, optimize asset-liability management, and strengthen financial market stability. As China's interbank derivatives market continues to expand, its product range diversifies and trading and clearing mechanisms mature. With increasing volatility in bond and foreign exchange markets, demand for derivatives-based risk management is growing rapidly. This exchange meeting addressed market needs by providing a platform for policy interpretation, business guidance, and experience sharing, assisting participants in mastering key aspects of interbank derivatives operations and enhancing practical skills.

Experts from Shanghai Clearing House and representatives from five financial institutions—including CITIC Securities, China Guangfa Bank, Dongguan Rural Commercial Bank, China Merchants Bank Wealth Management, and First Capital Securities Asset Management—delivered detailed presentations. Topics covered central counterparty clearing for domestic currency derivatives, foreign exchange derivatives clearing, market entry strategies for interbank interest rate derivatives, trading tactics, and risk management practices. Interactive discussions further deepened participants' understanding of interbank derivatives business, laying a solid foundation for advancing the derivatives market in Guangdong.

Moving forward, the People's Bank of China Guangdong Provincial Branch will strengthen collaboration with financial market infrastructures such as Shanghai Clearing House. It will continue to facilitate exchange and training platforms to promote steady growth in the interbank derivatives market. By guiding financial institutions in the appropriate use of derivative instruments and improving risk management standards, the branch aims to contribute to the stable and healthy development of Guangdong's financial markets.