Asia Unhedged | China allows foreign investors to hedge currency risk: WSJ
US 100 dollar banknotes and Chinese 100 yuan banknotes. Photo: Reuters, Jason Lee
US 100 dollar banknotes and Chinese 100 yuan banknotes. Photo: Reuters, Jason Lee
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China allows foreign investors to hedge currency risk: WSJ

China's foreign exchange regulator has approved the use of derivative products for hedging against currency risk as part of an effort to attract more foreign investment.

February 28, 2017 9:39 PM (UTC+8)

Shen Hong reported for the Wall Street Journal Monday that China’s foreign exchange regulator, the State Administration of Foreign Exchange, has approved the use of derivative products for hedging against currency risk. The move is part of an effort to attract more foreign investment which currently only accounts for 1.3% of China’s bond market. Recent estimates from Goldman Sachs also indicated that inclusion into the three main global bond indices would bring $250 billion into China’s bond markets.

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