Risk recycling issues stall China forex option market

Onshore corporates yet to take advantage of increased hedging options


A significant relaxation in the rules around Chinese corporates' use of foreign exchange options last year has not driven a material increase in volumes as limited risk recycling opportunities for dealers mean pricing is still high, according to Chris Allington, Singapore-based head of global FX for Standard Chartered.

In August China's State Administration of Foreign Exchange allowed corporates to sell options; previously they were only allowed to use forwards, or to buy options in order to hed

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: