HSBC and Standard Chartered have launched an interest rate swap product based on the Loan Prime Rate, Shanghai Securities News reported Tuesday. The product will reset interest rate on a quarterly basis, and is currently priced at 5.76 percent, it said. The move comes after the country’s first lending rate swap product was launched by Citic Bank and Citibank, the paper noted. China’s central bank on Oct. 25 announced the launch of Loan Prime Rate (LPR), a new benchmark lending rate for commercial banks designed to make interest rates more market-oriented. LPR is based on lending rates reported each working day by nine commercial banks designated by the central bank.
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